James Apartment Report Q4 2014

Overview
Denver is a popular apartment market for developers, lenders, investors and renters. The metro area benefits from a healthy economy, an attractive natural environment and a welcoming attitude towards newcomers. These factors combine to generate apartment development and demand.

Currently the amount of construction underway and planned is extensive. Rental rates have been increasing along with demand, but the amount of new apartment construction coming onto the market may cause conditions to weaken during 2015 or 2016. Over the long term Denver remains an attractive market for apartment investment but it is important to be cautious.

The Denver Apartment Market
The apartment market in metro Denver contains 195,601 units in apartment properties of 50 units or more. The City & County of Denver has the largest number of units, followed by Arapahoe County. Development is active in all seven counties, especially in Denver. Transit-oriented and downtown projects comprise many of the metro Denver apartment properties underway and planned. Almost no development of rental apartments is taking place in projects below 50 units.

The following table shows, by county, the number of units in projects of 50 units or more existing, under construction and proposed at the end of the 4th quarter of 2014. Not all of the proposed projects are likely to be built, and others will be added to the list. In addition the table lists the number of units started and completed during the 4th quarter of the year: James Apartment Report 4 Q 2014 (1)