EVENT RECAP
2022 Economic & Industry Outlook
On Thursday , Jan . 27 , the Apartment Association of Metro Denver hosted hundreds of industry professionals at ECON 2022 , its annual economic forecasting conference for the Denver multifamily housing industry . With presenters from Governor Jared Polis to economist Bryan Kaplan pronouncing the need for new housing , the conference ’ s resounding call to action was ending the historical overregulation of metro Denver ’ s rental housing market .
“ People want to move to Colorado , and that ’ s great , but we need more places for them to live ,” said Governor Polis , the conference ’ s opening presenter . “ It ’ s time to expand housing opportunities and incentivize the development of new multifamily housing .”
Gov . Polis acknowledged that reducing regulatory barriers to building will be an essential step toward increasing the rate and quantity of new construction in metro Denver . Rapidly rising costs , both in the single-family home and apartment markets , are a source of significant concern for Colorado ’ s lawmakers , Polis reported . Increasing housing density – particularly in Colorado ’ s major metropolitan areas – is at the forefront of lawmakers ’ agenda this session .
Bryan Kaplan , a professor of economics at George Mason University , presented on the impact of housing regulations on rental markets across the United States . Citing his research in the San Francisco Bay Area , Kaplan pointed to four categories of policy – height restrictions , multifamily restrictions , minimum lot sizes and minimum building requirements – as the primary culprit for rising housing costs in densely populated urban areas . With reduced regulation , Kaplan argued , the cost of housing in metro Denver would fall dramatically .
“ These categories of regulation are artificially reducing housing supply ,” Kaplan said . “ All the data points to a single conclusion : by deregulating housing , we can reduce the cost of both multifamily and single-family homes . This would also help address other societal ills , like inequality , which are the biproduct of an overregulated housing industry .”
Cary Bruteig , principal and founder of Apartment Appraisers & Consultants ( AA & C ), presented with Scott Rathbun , president of AA & C , on new construction and development trends in Denver . In his quarterly analysis , Bruteig found that the median single-family home price in Denver was $ 618,000 , nearly $ 400,00 higher than the national average , and accelerating at a rate 73 % higher than the national average .
Bryan Caplan Jared Polis
Elizabeth Garner
Cary Bruteig & Scott Rathbun
Andy Hellman & Bobby Hutchison
20 | TRENDS MARCH 2022 www . aamdhq . org