Take a look at Denver’s skyline on any given day, and the apartment-building boom becomes obvious. Most of the cranes you see towering above the city streets mark the home of a new multi-story apartment building as developers attempt to keep up with the ever-growing demand of rental units across Denver.
According to the Wall Street Journal, Denver’s median rents exploded over 52% in the past decade compared to the national average of 32%. That eye-popping statistic is linked to the fact Denver’s housing inventory hasn’t kept up with its booming tech industry and strong job market. For every new residential building permit between 2010 and 2015, nearly 3 jobs were created. As a result, the supply and demand for housing has remained out of whack for quite some time, and if you’ve rented in recent years, you’ve certainly felt the squeeze.
The good news? The squeeze is starting to soften.
The current frenzy of apartment building construction means the supply of new housing is beginning to catch up with demand (even exceeding it in some areas) causing growth of rental prices to dip. Many apartment buildings have even started providing perks to renters in the form of Visa gift cards, zoo memberships, and other creative discounts designed to get people in the door.
The Denver real estate sales market has mirrored this trend. Homes are not selling as quickly as they have over the past couple years. Many are coming “back on the market”, and there are numerous price adjustments on overpriced listings. The total number of sales in September were down 15.5% year over year and down 20% from August, which is way above the typical Fall slowdown.
This means it’s a great time to make offers and invest in real estate, as the trend will not last long. The first 6 months of 2018 should be good with strong appreciation in home values, and if Denver succeeds in its bid to become the home for Amazon’s HQ2, we should see a 30% uptick in real estate prices. We should find out in January of 2018! By - Oct 17, 2017