X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DENVER-Metro-area apartment vacancies, already at a 16-year high at 13.1%, will likely increase even more during the second half of the year, according to a report by the Genesis Group, a local firm that tracks all types of housing along the Front Range. Genesis says the large number of apartments still under construction will drive up vacancy rates.Also, apartment developers will likely continue to offer rental incentives to keep residents. “This will be particularly effective if interest rates begin to increase and make home ownership less affordable,” Genesis reports.

In addition, as apartment project values are eroded by high vacancy rates and lower rental rates, condo conversions will become an increasingly attractive alternative for apartment owners, the Genesis report goes on to say. That will be especially true for apartments built within the last few years, as many of those were built with the idea of conversion as an exit strategy, according to Genesis.

The Genesis report says that will provide stiff competition to the lower-end of the for-sale housing market, “And if interest rates remain low, apartment owners will have an increasing financial incentive to convert to condominiums and compete with the attached for-sale market.”

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
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

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 © 2020 ALM Media Properties, LLC. All Rights Reserved.