City Cast Denver Construction Is Booming! Why Aren’t Rents Coming Down Faster?
8 snips
Jan 6, 2025 Drew Hamrick, General Counsel and Senior VP of Government Affairs for the Apartment Association of Metro Denver, dives into Denver’s booming construction scene. He explains why rents aren’t dropping despite new apartment buildings and discusses the influence of rent-setting algorithms on pricing. The conversation also touches on how recent affordable housing ordinances have drastically affected permit applications for new developments. Drew shares insights on potential future rent increases and the evolving dynamics between landlords and tenants.
AI Snips
Chapters
Transcript
Episode notes
Supply and Demand Mystery
- Denver's experiencing a construction boom of new apartments, yet rents remain stable or slightly declining.
- This is due to the increased supply finally meeting demand, resulting in a market correction.
Housing Supply Lag
- The construction of new housing takes years, while demand shifts quickly, creating price fluctuations.
- Local governments often hinder development, exacerbating the housing shortage problem.
Rent vs. Owning
- While rent is high, the cost of renting is currently historically low compared to owning.
- Rent increases in Denver have been modest compared to other economic sectors experiencing high inflation.