Apartment Trends Magazine August 2019 | Page 38

ECON 2019 ECONOMY | COMMUNITY | OUTLOOK | NETWORK BY JOSEPH DUCATTE L ast month, AAMD hosted its annual Summer Econ, which attracted industry leaders and professionals as participants, presenters and sponsors, and serves as an educational opportunity to understand the Colorado housing environment. This year, the focus was on future trends in and the overall health of the housing industry. “People are surprised to learn that average rent growth was actually below infl ation over the past year. When measured against the costs of all of the other goods and services, rents are actually more aff ordable today than a year ago,” said Teo Nicolais, a housing provider, and Instructor at Harvard Extension School. “Within the last few years we’ve reached an important milestone in Denver’s housing market: new construction outpaced household formation. In 2015, rents grew by almost 9% but in 2017 rents increased by just 0.6% after adjusting for infl ation. Since then, annual rent growth has hovered at around 0.5% and, in two quarters, was actually negative when adjusted for infl ation." This year’s conference featured a diverse array of speakers and presenters, 36 | TRENDS AUGUST 2019 ELIZABETH GARNER THOMAS FREY TEO NICOLAIS JIM LAPIDES including Colorado economist Elizabeth Garner, futurist Thomas Frey, Jim Lapides from the National Multihousing Council and local owner and industry expert Teo Nicolais. These experts discussed the latest housing trends and the present and future economic health of Colorado’s housing industry. Frey off ered insight on what cities might look like in the future and how multifamily executives might adapt housing to meet the changing needs of a future population. According to Frey, cities will lose revenue streams due to futuristic technology. “Drones, cryptocurrencies, universal WiFi, and driverless technology are imminent and will change most facets of our day to day lives,” he said. “It’s something to think about when looking and planning ahead.” Garner covered trends in population growth, showing that while Colorado continues to see growth, it’s at a declining rate. “While population growth for CO is slowing, approximately www.aamdhq.org