March 9, 2017
In 2015, the Denver metropolitan area’s multifamily sector experienced a year of near double-digit rent growth. In 2016, “the Denver metro area fell back to earth,” noted Axiometrics’ February 2017 Market Trends newsletter. Though the market’s effective rent growth remains below its 2015 cycle peak, Axiometrics noted that supply and demand fundamentals are still in good shape.
Though more apartments have been added to the metro mix, job growth means demand will remain well ahead of supply. Denver job growth was 3.2% in December 2016 (the last month for which data is available). The number of jobs is anticipated to increase, on average, by 2.1% a year through 2021.
Meanwhile, during the same period, Axiometrics forecasts that 8,000 units per year will be added. Axiometrics pointed out that above-average job growth, combined with a lack of affordable single-family housing will continue to boost the apartment market.
For comments, questions or concerns, please contact Amy Sorter