Denver-Area Apartment Market Dealing With Crush of New Units
Could Denver’s rapidly developing multifamily market be heading for trouble? Some local experts think so.
Amid a crowd of new apartment deliveries, concentrated in downtown Denver and other close-in neighborhoods, multifamily executives and brokers said they are concerned a new softening of the market could force developers to rethink their strategy in the region and lead to a potential undersupply of units down the road.
A spate of new units on the market, especially in the luxury segment, led to larger concessions and flattening rent growth in the second quarter of the year. Coupled with increasing operational expenses and other costs, certain sections of the Denver-area multifamily market are seeing some softening, according to Scott Johnson, division president at home builder Lennar’s Multifamily Apartment Division, who spoke at a recent industry event.
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