Denver is a city with a vibrant lifestyle. It is home to four major league sports teams and offers a thriving nightlife and convenient access to recreational activities like skiing, hiking, rock climbing, and kayaking. U.S. News & World Report named it the best place to live in the U.S. in 2016, and it ranked No. 1 on Forbes’ Best Places for Business and Careers list in 2015.
Neither the city nor its metropolitan area is very large, yet Denver’s attractive lifestyle has drawn in many well-known brands and companies, including Village Inn, Chipotle, Quiznos, Molson Coors Brewing, Big O Tires, Shane jewelers, jar-maker Ball Corporation, MapQuest, and Newmont Mining. The city is a center of the telecommunications industry, and Lockheed Martin, United Airlines, Kroger, and Rio Tinto Group all have large offices there.
Fast-Growing City with Low Multifamily Vacancy
In July 2017, Denver was ranked as the 13th fastest-growing city by population in the United States, and 9th fastest the year before. The high price of single-family housing and a growing population have bolstered multifamily demand in Denver—the median price of a house in the Denver area is more than $400,000. Rents rose in the city 52% between 2005 and 2015, a rate that ranks third in the country.
Vacancy rates remain favorably low in Denver, near 5% in mid-2017 but may begin to increase as the new supply in the market continues to be delivered. The metro area’s population is predicted to grow by 18.9% between 2015 and 2025 so that should help keep vacancy rates manageable.
The multifamily construction and rental markets are strong at the top end in Denver. For example, 281 luxury units hit the market in mid-August with another 271 units scheduled to complete by the end of the year via two 32-story high-rise towers. With housing inventories in Denver at record lows, residents continue to opt for multifamily apartments as a way to provide flexibility, lower payments, and luxury amenities. Investment opportunities are available in the market, but it requires local expertise and execution ability.
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