2022 is shaping up to be the best of times for apartment construction in the United States, with no less than 420,000 new rentals are expected to be built nationwide by the end of the year. According to the recent RentCafe report, Metro Denver is running full steam ahead on the development front, with 10,570 new apartments expected to hit the market by the end of this year. Denver holds the 12th highest number of planned deliveries nationwide, securing a spot in the top 20 U.S. metropolises by estimated number of apartments, just behind Orlando, FL (11,338 units) and Los Angeles, CA ( 11,536 units).
“The construction industry is finally returning to pre-pandemic activity levels, but is still hampered by three familiar challenges: labor shortages; costs and availability of materials; and supply chain issues,” said Doug Ressler, business intelligence manager at Yardi Matrix.
- The Denver Metro is back in full force – as construction rates are up in the region of 50% compared to 2021. This impressive increase is the 3rd highest of the top 20 rankings.
- While Denver is booming on the development front, current projections will not guarantee Metro a 5-year record for apartment deliveries. In 2017, Denver added 5,777 new rental apartments to the market, and completions more than doubled the following year, totaling 13,414 new rentals. Construction activity declined steadily after this peak, falling to 7,027 units by 2021.
- Looking at the subway’s top contenders for apartment showings, Denver takes the lead with 3,304 new units expected by the end of the year.
- Westminster and Aurora complete the subway podiumwith a strong pipeline of apartments – 1,580 units and 1,393 units, respectively.