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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.

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