2022 is shaping up as the best of times for apartment construction in the US, with no less than 420,000 new rentals expected to be built nationwide by the end of the year. According to the recent RentCafe report, the Denver metro is firing on all cylinders on the development front, with 10,570 new apartments expected to hit the market by the end of this year. Denver holds the 12th largest number of projected deliveries nationwide, securing a spot among the top 20 US metros by estimated number of apartments, right behind Orlando, FL (11,338 units) and Los Angeles, CA (11,536 units).
“The construction industry is finally returning to pre-pandemic levels of activity but is still being hampered by three familiar challenges: labor shortages; material costs and availability; and supply chain issues,” said Doug Ressler, manager of business intelligence at Yardi Matrix.
Report highlights:
- Denver metro is back with a bang — as construction rates are up in the area by a whopping 50% compared to 2021. This impressive increase is the 3rd highest in the top 20 charts.
- While Denver is thriving on the development front, present projections will not secure the metro a 5-year record in apartment deliveries. In 2017, Denver added 5,777 new rental apartments on the market, and completions more than doubled the following year, totaling 13,414 new rentals. Construction activity declined steadily after that high, dropping to 7,027 units by 2021.
- When looking at the metro’s top contenders for apartment projections, Denver takes the lead with 3,304 new units expected by the end of the year.
- Westminster and Aurora complete the metro’s podium, with a strong pipeline of apartments — 1,580 units and 1,393 units, respectively.
