Apartment Trends Magazine February 2020 | Page 29

2020 Economic Conference Nearly 500 People Attend Refreshed Event at Mission Ballroom BY HANNAH HOCK T he “roaring” 1920s was a decade of economic prosperity across the United States. New inventions like the automobile, the airplane, and the radio transformed the technology landscape and gave Americans renewed hope for the future. A century later in 2020, Americans are again exploring a new frontier of tech discovery and innovation. Major metropolitan cities, which now include Denver, are swelling with new residents seeking jobs and fresh opportunity. On January 28, the Apartment Association of Metro Denver hosted nearly 500 industry leaders at Denver’s newest concert venue, the Mission Ballroom, during its premier 2020 economic forecasting conference for the Denver multifamily housing industry. 2000 and 2020, over 200,000 millennials have moved to Colorado. The initial boom in 2013 was unmanageable for Colorado’s infrastructures and spiked rental prices, but the state has since built their way out by creating more units. As millennials approach peak home buying age, this steady demand will only increase. In light of this data, the resounding call-to- action was to increase construction, particularly in Metro Denver. Experts explained the growing demand for housing must be met by supply in order for Colorado remain economically secure. Constructing new rental units and houses will lower the prices of current residences and accumulate affordable housing over time. STUDYING THE PAST TO INFORM THE FUTURE Over the past decade, Denver’s rapid population influx that has transformed the city’s infrastructure and housing availability. The growth initially revealed weaknesses in its housing market, but the state has largely adjusted to supplement housing for its booming size. Current market analysis reports that Colorado, particularly Metro Denver, is behaving normally compared to Q4s over the past 40 years. Vacancy is at 5.3% and average rent has decreased to $1,503. Overall, Colorado’s economy is largely stable, and less volatile than it has been in past years. “The economy is slowing, but still growing” said speaker Elliot Eisenberg, the internationally- acclaimed “Bowtie” economist. “The market experienced an unusual growth spike over the last two years because of tax cuts, and it is simply slowing down to an average, stable rate. While other industries may be experiencing slumps, the housing industry is strong and does not need to be worried about an impending recession.” In addition to Elliot Eisenberg, attendees heard from CoStar Market Analyst Michael Petrivelli, industry expert Teo Nicolais, and a panel of other housing influencers. The topics of discussion centered around market growth, multifamily industry challenges, and potential regulatory impacts. Colorado’s rapid population growth, particularly among millennials, was a primary source of analysis during the conference. Between www.aamdhq.org How Will the New 20's Roar? Elliot Eisenberg JANUARY 2020 TRENDS | 27