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Page 4 — Multifamily Properties Quarterly — November 2019 www.crej.com Market Update The nation’s #1multifamily lender is lending in your backyard. Chase is known for our fast and efficient loan processing. It’s what has made us #1 in multifamily lending nationwide. With great rates, low fees, and a deep understanding of the local market, our team gets apartment loans done right. Catherine Murphy Executive Director (303) 512-1283 catherine.murphy@chase.com Josh Tidwell Executive Director (303) 244-3403 joshua.m.tidwell@chase.com Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. Terms and conditions subject to commitment letter. Products and services provided by JPMorgan Chase Bank, N.A. #1 claim based on 2018 FDIC data. ©2019 JPMorgan Chase & Co. All rights reserved. Chase is a marketing name for certain businesses of JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A., Member FDIC. 530052 MULTIFAMILY LENDING Low Fees | Great Rates | Streamlined Process I n the past 10 years, we have seen a substantial shift in housing trends, specifically household’s increased prefer- ence to rent and decreased feasibility to own. On a national level, the steadily declining home- ownership rate clearly indicates this trend. There are many contrib- uting factors to this shift, which have impacted housing markets of certain metros more than others. Looking at these factors, there is an apparent correlation with a metro area’s appreciation post-housing crash and the area’s increase in renter households. Denver leads the pack in this metric with the sharpest recovery in home prices out of the United States’ 100 larg- est metros, in addition to outpac- ing employment growth with an influx of entry- level yet high-pay- ing employment opportunities. From 2010-2017, metro Denver grew by 98,982 households, equat- ing to an 8.42% increase. Over the same period, metro Denver’s homeownership rate decreased over 3 percentage points, from 68.22% to 65.1%. This change represents a 71,137 increase in renter households, accompanied by an increase of only 27,845 home- owners. Simply put, from 2010- 2017, approximately 72% of new households formed in Denver chose to rent instead of own. Caused by strong economic growth, a consis- tent in-migration of young talent and plenty of room for new devel- opment, this shift changed Denver’s typical household demographic. Despite the abundant growth of high-paying job opportunities, Den- ver residents still are feeling priced out of homeownership. From 2009- 2019, the average home price in metro Denver increased 103%, while average monthly rents increased only 79% during the same period. This gap was well complemented by Denver’s influx of young profes- sionals seeking heavily amenitized, flexible rental options in urban high-density locations. Considering metro Denver’s median home price of $455,000, households looking to own will need not only $91,000 upfront for a down payment, but approximately $2,164 per month to afford their mortgage, taxes and insurance. Compared to current metro Denver rents of $1,527, rent- ing is the more fiscally attractive option for most new households in Denver. Adding to this trend is the fact that the average student debt in the U.S. is upward of $32,000, making a down payment particularly chal- lenging. While many of the new households migrating to Denver HowDenver rents stack up to buying in the city Terrance Hunt Vice chairman, Newmark Knight Frank Please see Hunt, Page 27