Local Apartment Market Staying Course

DENVER-Despite the slowing national economy, the local apartment market remains healthy, says David C. Osborne, regional manager for Marcus & Millichap’s Denver office. “The national economic slowdown has yet to significantly impact the Denver apartment market, although layoffs are beginning to occur in the financial sector,” according to the company’s apartment research report. It notes that construction employment in the Denver area is expected to grow by 0.9% this year. The overall job growth is projected at 2.24%, down from 3.4% last year.

Osborne says that about 6,300 new apartment units will break ground this year, about 30% fewer than last year. “However, even with the decline in the pace of construction, new construction starts will continue at high levels relative to other US cities,” according to Osborne’s report.

Osborne says the lack of available site and high barriers to entry will create a premium for locations along the US 36 corridor between Denver and Boulder and the Downtown Denver area. “Due to this shortage of new sites, older apartment are being renovated or converted into condominium projects,” he says.