Apartment Trends Magazine February 2020 | Page 30

Management Panel: David Jaudes, Terrance Hunt, Cindy Clare, & Darren Everett Colorado’s current economic health gives housing industry professionals the space for proactive thinking towards the future. A stable market is not guaranteed, so it is important to study past trends to before making decisions for the future. The most dominant trend from the last decade was the surge of millennials moving to Colorado. From 2000 to 2020, over 200,000 millennial residents flooded the housing market. The influx spiked in 2014, and Denver simply did not have enough housing to sustain the growth, so rental rates hit a record high. 28 | TRENDS JANUARY 2020 In the years following, Denver has pushed rental growth back down by continuing to build a large supply of new houses and rental units. As of 2020, the millennial surge has largely abated and Colorado rental rates have decreased. The circumstances surrounding 2014 are not likely to be repeated. The market may be safe today, but it is important to note potential risks, particularly surrounding housing construction. Construction of new units has decreased over the past two years, 20% from between 2018-2019 and 25% compared to 2017. If this trend continues, rental rates will inevitably increase. While out-of-state Teo Nicolais speaks on the 4th quarter Vacancy & Rent Report www.aamdhq.org