DENVER — Despite the fact that new data from Yardi reveals that apartment construction is slowing down in 2018, Denver’s multifamily deliveries are projected to increase by 150 percent over last year.
Unlike in much of the nation, Denver’s multifamily market is booming. According to the report, developers are planning to build more than 15,187 new apartments this year, 150 percent more than last year — a direct response to the city’s population increasing by 1.3 percent.
Denver plans to add 9,268 new units by the end of the year. The uptick in deliveries can also be attributed to a lack of construction labor, prolonging construction time for commercial real estate projects in the city.
“The latest employment numbers came in at 2.3 percent as Denver is experiencing a lack of construction workers for multifamily and competing with office developers for labor resources. This was combined with a 2017 Mid-year decline in occupancy from 95.8 percent overall to 94.9 percent at Year-end,” said Yardi Matrix senior analyst Doug Ressler.
Construction volumes will reach 1,388 new apartments in Westminster and 725 in Lakewood. Parker, Wheat Ridge, Glendale and Littleton are expected to add only around 500 new apartments each.
Nationally an estimated 283,000 new units are expected to be completed – 11 percent less than last year. Despite this slowdown, the past three years’ total deliveries are projected to pass the 900K mark by the end of this year – the highest since the mid ‘80s.