Apartment Market Conditions and Trends
in Metro Denver, Colorado
1st Quarter – 2020
Welcome to Apartment Perspective. In addition to JRES analysis of vacancy, demand and rental rate trends, Apartment Perspective includes a survey of all apartment projects under construction and proposed in metro Denver, and all communities started and completed during the 1st quarter of 2020.
Into the 1st quarter the Denver area apartment market was still very active. The strong local economy was creating healthy demand for apartments although supply was starting to more more more than plentiful. At the end of the 1st quarter of 2020 over 20,000 units were under construction and another 35,000 units were proposed.
That situation was thrown entirely into disarray by the advent of the Covid-19 virus and its impacts on the local and national economies. The effects on the apartment market were starting to be felt at the end of the 1st quarter. However, for the balance of 2020 it is likely that the apartment market conditions will deteriorate, with higher vacancy rates, lessened demand and lower effective rental rates. In addition, happening just at the worst possible time, thousands of new apartment units will be completed and added to the market, most in the upper price range.
Over the long term Denver remains an appealing market for apartment investment but the effects of the virus will continue for some time. In fact, it is simply impossible to make any informed predictions about when the apartment market in metro Denver will finally recover. It is best simply to watch carefully.
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Thanks for your interest.
Bill James