DENVER – Denver is outpacing bigger metropolitan areas when it comes to new apartment construction, according to the latest data from real estate research company Yardi Matrix.
Nationwide, apartment construction is at a 20-year high, according to Yardi Matrix, but not all major cities are seeing the same kind of construction boom as Denver.
In the Denver metro area, the company estimates 13,142 apartments will be completed by year’s end, up 18 percent from last year. That puts Denver in sixth place on Yardi Matrix’s list of metros with the most apartment construction going on this year.
The majority of new apartments – 7,672 – are being built in Denver, followed by Englewood with 1,004. Lakewood has the third-largest number at 908 and Westminster and Longmont round out the top five Denver-area cities with more than 650 new apartments each.
The increase in rental inventory is badly needed in Denver. Construction has failed to keep pace with the influx of people moving to the area in recent years, leading to a competitive market and higher rent prices across the metro area. The median rent for a 2-bedroom apartment in Denver now stands at $1,330.
Only time will tell if those 13,000 new units will help.