Apartment Construction on the Rise
If you take a tour around Downtown Denver you will see a lot of construction underway. But whether it’s a crane in the sky or a concrete pour, most of the larger projects are not about new residential housing, but instead apartments.
In Union Station, the site that was once thought to be a project similar to Glass House, construction is underway on City House, an apartment building. In LoHi, across from Lola and Vita, a prime location is now alive with renters in a large scale apartment complex. Riverfront Park boast two new Apartment buildings with the newly completed phase of the Manhattan and the new AMLI under construction.
Take your pick of any Denver neighborhood and you are likely to see the major projects focused on apartment construction. The reasons why are easy… lenders become much more willing to loan developers funding for apartment projects due to Denver’s rising rental rates. But all those parcels that have been assigned to apartment projects mean less inventory that could have been residential.
Being a Homeowner in Denver just became a better decision
Some of the homeowners we’ve spoken with couldn’t be happier. With an already rapidly moving market sellers are able to command higher prices on their homes. With no new inventory coming on the market, those who own in downtown areas are watching as their real estate becomes even more valuable.
We recently had a buyer with a focus on Riverfront Park. If the parcels that are now being developed would have been residential there would have been more available inventory for the neighborhood competing with existing listings.
When SPIRE was being built (and sold) the inventory on the market created a nice price opportunity. With no new high rise residential buildings underway inventory, and prices, have increased.
But these are just the kind of market conditions that generate the needed demand for a developer to begin a new high rise in Denver. Every time our average price per square foot goes up both lenders and developers take note. How far away are we from a market where a new high rise is a better investment than a new apartment building... we have some guesses but so much depends upon the position those developers are currently in.
Fortunately, there are a large number of smaller development projects going on throughout the city. They move quickly, and the New Era Realty team is focused on these projects so our clients can be better informed in this exciting market.
To learn more about how New Era Realty can help you find your dream home or condo, or to learn what your home might be worth, contact anyone on the New Era Realty team today.