Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Multifamily rental developers only pulled 2,214 permits for units in the metro area in the first eight months of the year, according to the latest report by the Home Builders Association of Metropolitan Denver. The last time permits pulled in the first eight months of the year was lower was 1,853 in 1993.

At that time, however, the market was much smaller.

Experts applaud the drop in permit activity, noting that overbuilding in 2000 and 2001, coupled with the slow economy, has led to high vacancy rates, dropping rents and incentives such as three months of free rent on 12-month leases.

The market has become so soft that even class-B and class-C properties are being forced to offer free rent, and not just the newest and most expensive units.

An increasing number of people are moving back home, or taking advantage of interest rates near a 40-year low to leave apartments and buy homes, experts tell GlobeSt.com.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.