ECONOMY
in vacancy rates as renter retention rates have improved . The relative affordability of the Denver market leaves many opportunities for growth , although the supply and demand dynamics remain a major challenge . When all of the Denver metro stats are comprehensively viewed , this past fourth quarter may have been possibly the softest quarter on record .
Other highlights from Jay Parson ’ s included :
• Home prices have grown twice as much as rents since 2021 .
• The theme of it ’ s cheaper to rent than buy has held true since 2021 .
• For 24 straight months wage growth has outpaced rent growth … 4.3 % in wage growth compared to . 3 % in rent growth .
• In the US , renters pay 31 % of their income in rent . In professionally managed REITs this figure is in the low 20 %.
• Most markets throughout the US have been able to keep rents stabilized since last summer , but not Denver or Aurora .
• The average renter in the US is 31 years old .
• Future supply until 2026-27 still very strong , but after 2027 things will likely really slow to a near shut down mode
• Most economist liken the 2:1 income to rent law in Colorado ( SB 23-184 ) to the 2008 housing crisis , because people are being led to believe they can buy / rent something they really cannot afford . This is a substantial cause of the rising eviction filing stats
Next up , audiences were treated to a Client Services Panel discussion featuring local market experts Amie Robertshaw , Elizabeth Dapper , Liz Shrout , and Annalisa
Lavoie .
LIZ SHROUT , ELIZABETH DAPPER , ANNALISA LAVOIE , AMIE ROBERTSHAW
This conversation largely focused on how partnerships and data-driven approaches can help businesses navigate economic pressures . Panelists discussed practical strategies and methods to adapt service models , enhance customer satisfaction , and maintain growth amidst uncertainty . A common theme was established by the panel in that - honestly presenting facts to clients and team members is the best practice when it comes to communication and serving the clients long term goals .
A presentation by DJ Summers , director of policy and research at the Common Sense Institute , explored the high cost of crime as it affects the local economy . He revealed that crime cost Colorado an estimated $ 27.2 billion in 2022 . Violent crime significantly impacts public safety , leading to decreased foot traffic and high vacancy rates in downtown areas which impact economic growth . DJ discussed new policies which are designed to enhance public safety and attract businesses back to impacted communities , while stressing the need for data-driven strategies to reshape public perceptions and foster economic recovery .
M . Nolan Gray , an expert in urban landuse regulation , concluded the event with a forward-looking presentation on adapting to market challenges and seizing opportunities for long-term success . He urged attendees to embrace innovation and flexibility as cornerstones for navigating economic complexities .
Throughout all of the day ’ s conversation , resilience emerged as a central theme . From the morning ’ s business exchange to the afternoon ’ s expert presentations , attendees explored strategies to address challenges and leverage trends to drive growth . All attendees left the event with actionable insights and strengthened connections , ready to navigate the economic complexities of 2025 with confidence and creativity .
28 | TRENDS FEBRUARY 2025 www . aamdhq . org