PERSPECTIVES
BY MARK WILLIAMS
2025 will be a challenging year , but there ' s good news too !
As the 6th largest Apartment Association in the nation , AAMD strives to provide the best in education , professional growth , legislative updates , information , industry reports , and networking opportunities . We are so grateful to you and all of our members - for the continued support and ambassadorship of our industry ! AAMD strives to to meet the ever-changing needs of the industry , and we can ’ t do it without you !
The cover of this month ' s issue of Trends gives us a unique perspective on Denver . 2025 promises to be a challenging for the apartment industry , shaped with numerous uncertainties . With the recent ( 3-4 year ) pipeline of aggressive construction still delivering new units , we ’ ll likely see flat rent growth . At the same time , new state laws and regulations are expected to increase operational expenses . Compounded by rising costs for labor , insurance , materials … along with financing hurdles- everything points to strong headwinds for 2025 . Additionally , while the November elections pushed the nation toward more conservative policies , Denver continues to move in the other direction , further complicating the local business environment .
However , there is good news . Denver remains one of the most beautiful and desirable places to live and work , so demand for apartments will stay strong in 2025 . As we wrap up 2024 , several key metrics paint a picture of a dynamic and strong local apartment market :
• 435,000 apartments in Metro Denver , calculates to $ 10 billion in annual apartment rent income
• 34,000 new units under construction , + 57,000 more being considered
• 600,000 units in Colorado , translates to over 1.1 million Coloradans living in apartments
• Average rent in the Denver Metro area is $ 1,911 , or $ 2.22 / sq ft
• $ 1,798 is the average rent in Colorado ( excluding the Denver area , the average rent is $ 1,531 )
• The total value of apartment stock in Metro Denver exceeds $ 128.7 billion
• Industry Compensation rose 12.6 % from 2022 to 2024 , while turnover remains a huge challenge at 38 %
As 2025 begins , our top priority remains protecting your business ! While housing affordability continues to be a priority for lawmakers , unfortunately , their efforts have unintended consequences that usually worsen the issues . The NMHC reports > 40 % of apartment housing costs are from govt regulations . And the hits just keep coming , with Colorado legislature passing a record # of bills in 2024 , an output which is the 3rd highest in the US according to the Common Sense Institute . CSI also reports 2024 laws are 51 % more complex than laws written from 2012-2018 . But , rest assured , AAMD & CAA are ready to advocate for you and minimize these impacts ! Beyond advocacy , AAMD is focused on a variety of initiatives to strengthen the apartment industry in 2025 :
• Attracting new talent to the industry through targeted campaigns
• Investing in job and career fairs to connect job seekers with industry opportunities
• Expanding our Hands-On Maintenance Education ( H . O . M . E .) Program
• Continuing the AAMD Maintenance Apprenticeship Program ( M . A . P .)
• Advancing our Junior Achievement partnership to nurture future talent and renters
• Offering our latest Compensation Report , which includes data from 169,753 Units and 3,572 people
• Updating the CAA Legal Handbook and expanding the “ Coffee with the Lawyers ” program
• Enhancing services and forums for our Independent Rental Owners
Watch for updates on all of these programs and more throughout 2025 !
Mark Williams is Executive Vice President at Apartment Association and Apartment Association of Metro Denver .
4 | TRENDS JANUARY 2025 www . aamdhq . org