New construction of apartment buildings has been wildly energized in Denver, Colorado as its tech industry and job market prosper. So much so that some experts say demand is being met or exceeded by the supply of new housing.
Many buildings are enticing prospective tenants with incentives like signing bonuses, reduced rent, and perks like dog spas, free gigabyte high-speed internet, and sports lounges. Realtor.com reports that a slowdown in for-sale luxury condos being built helped fuel the rental-building boom, and that rental buildings are less vulnerable to lawsuits. Property groups are eyeing the nearby suburbs like Littleton for new development.
Median rents in Denver grew to $1,184 in 2015, up from $777 in 2005—a 52% increase, according to data from rental website Apartment List, compared with 32% nationally. Construction of new units boomed during the same decade, but remained slower than the pace of new job creation, with 1.7 new jobs created for every new residential building permit. From 2010 to 2015, the ratio was particularly off-balance, with 2.9 jobs added for every building permit, according to census data analyzed by Apartment List.
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