Apartment Demand Remains Intense Amid Diversified Denver Economy
Completions remain elevated this year, placing upward pressure on vacancy. A diversified economy will bode well for the Denver apartment market this year, keeping vacancy at historically low levels despite a surge in inventory. Low oil and gas prices are putting pressure on energy companies in the market, and spending cuts and layoffs are affecting employment gains at energy-related companies. Technology, finance, education and medical hiring are taking a larger role in stabilizing the metro’s employment base and attracting new residents.
As a result, construction has occurred at elevated levels over the past three years, raising inventory 13 percent during the same time frame. Despite this influx of inventory, vacancy has slipped to historic lows amid rising renter demand and the average rent has advanced more than 60 percent from the previous peak.
