DENVER (KDVR) — New data shows apartment construction rates in the Denver metro-area are down considerably compared to this same time-period last year.
According to the new numbers from RentCafé, the Denver metro area is only expected to add 5,581 new units on the market by the end of the year, which is about half of the apartments delivered to the Mile High City in 2020.
Analysts said this is the result of two main factors: a distressed population and a decrease in net inbound migration.
Overall, construction rates are down by 46% this year in the Mile High City, mirroring the number of apartments we had delivered five years ago.
According to the data: in 2017, only 5,777 new units hit the market.
In terms of where apartment construction rates are healthy along the Front Range, look no further than north of Denver.
“Boulder and Fort Collins are probably the gold spots in terms of where the new construction has gone. First of all you have the price of land that’s a little bit less. Your ability to build larger units is priced accordingly. Single families like that. Aging millennial families with larger families who cannot afford to buy if a house is available,” said Doug Ressler, manager of business intelligence with Yardi Matrix.
Brand new data from Stessa shows in the Denver metro area alone, homeowners pay on average 14.7% more on mortgage payments and property taxes each month than renters spend on rent.
The data from RentCafé shows you have to make at least $25 an hour to afford a decent one bedroom apartment in the Mile High City.