Apartment Trends Magazine February 2020 | Page 31

Michael Petrivelli gives a Colorado Market update millennial migration has slowed, millennials currently residing in Colorado are reaching peak homebuyer age and the demand for both rental and buyer housing remains steady. In addition, several well-intentioned policies have been passed by the Colorado legislature to locally constrain unit supply. Th e most recent example is the Housing Growth Cap Q200 passed in Lakewood. Since more people move Colorado each year, limiting construction of new homes will only result in rent growth. Cities with similar ordinances, such as New York, Seattle and San Francisco, have some of the highest rental rates in the nation. PRESENTING SPONSORS: PLATINUM SPONSORS: BAND SPONSORS: Denver still has time to avoid this lingering possibility by handling aff ordable housing strategically. If rates are restricted to create an unusually aff ordable environment, then the people in expensive cities will fl ock to Colorado and claim the housing intended for lower-income residents. Th e answer to aff ordability for the next decade must be multi-layered and individualized. Th e Colorado legislature working together with the private sector and housing placement organizations can create long-term, sustainable solutions. While there is obvious work to be done, it is important to note that Denver remains in-line with housing aff ordability across the United States. Th e 2000s turned Denver into a major metropolitan city, and its rental rates are comparable to other large cities across the country. In fact, Denver still has lower rent overall than cities with caps on housing construction or rental rates. GOLD SPONSORS: Aff ordable housing will be created through a variety of solutions, and the housing industry plans to dedicate the next decade to fi nding these answers. But if Denver’s history is any indicator, a proven method for lowering rates is increased construction. Colorado must keep building homes so that prices of existing units will decrease and aff ordable housing can accumulate over time. SILVER SPONSORS: Your success is our business. www.aamdhq.org JANUARY 2020 TRENDS | 29