In June 2002, permit activity fell by 36.48% from June 2001 with 648 permits being pulled compared with 1,020 last year. The drop is widely applauded by those in the industry.
"This is a trend that will continue for a while," Jeff Hawks, an apartment broker with Grubb & Ellis tells GlobeSt.com.
And economist Nancy McCallin, director of the Colorado office of state budget and planning, says the Denver-area apartment market is overbuilt and developers should have pulled in their projects in 2000, if not in 1999.
The glut of apartments on the market today will mean continuing rising vacancies and falling rents, although it will not be as bad as the real estate depression in Denver of the late 1980s, she says.
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