Denver ranks No. 9 out of 50 metro areas in terms of hardest cities to add necessary new apartments, according to new research from Hoyt Advisory Services, commissioned by the National Multifamily Housing Council and the National Apartment Association. Honolulu, Boston, Baltimore, Miami and Memphis, Tennessee, were ranked the hardest cities out of the 50 metro areas studied.
The research examines and ranks 50 metro areas based on specific factors, including local regulations and the amount of available land to develop. The ranking, titled the Barriers to Apartment Construction Index, scores 50 metro areas along an index that goes up to 19.5 in the most difficult market to add apartments (Honolulu) all the way down to -5.9 in the easiest (New Orleans). Regardless of where each metro area ranks, the United States needs to build at least 4.6 million new apartments by 2030 to meet the expected increase in demand; otherwise the affordability problems that exist today will only get worse.
“The Denver metro area needs all types of apartments and at all price points,” said Nancy Burke, vice president of Government and Community Affairs, Apartment Association of Metro Denver. “Denver apartment developers, owners and managers and their residents contribute $10.4 billion to the local economy annually, and that number is expected to increase with increased demand.”
TNAA and NMHC also released Vision 2030, a set of recommendations for policymakers at all levels of government on how to lower barriers to development and better address the current and future housing shortage of all types of apartments and at all price points. To add to the challenge of accommodating 4.6 million apartment households, as many as 11.7 million existing apartments could need to be renovated, or risk being lost from the stock.
“For many families, locally and nationally, the shortage of affordable rental housing creates significant hurdles that can hamper their future financial success,” added Burke. “This is not just a problem for today. By 2030, the affordable housing crisis will become even more severe unless public and private sector leaders take bold, innovative action.”
According to the research, the easiest cities to build new apartments included New Orleans, Little Rock, Arkansas, Kansas City, Missouri, Indianapolis and St. Louis.
Based on research conducted by Hoyt Advisory Services and commissioned by NMHC and NAA, the data includes an estimate of the future demand for apartments in the United States, the 50 states and 50 metro areas, including the District of Columbia. For the purposes of this study, apartments are defined as rental apartments in buildings with five or more units. The data are available on the website www.WeAreApartments.org.
