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