DENVER: What Happens If Job Growth Slows?
Multifamily is so hot in Denver that we should nix the lark bunting for cranes as the state bird. But the city is mulling a question all markets face: What happens if the job growth slows—or even stops? To absorb all the supply coming online in the next 24 months—triple the annual average absorption amount—Denver has to continue the same job and population growth it's seen the past few years, says Greystone managing director Jef Elm (he's snapped at the Old Head Golf Links in Ireland). The good news: He thinks it'll probably happen.
CBRE EVP Michael White agrees that the odds are that Denver will keep attracting the kind of well-paid, young workers that'll keep the apartment market humming. The area's got the right industries, as well as appealing lifestyle options. (Wink.) For now, most Millennials will be attracted to urban properties. As they age, many of them will want to live in more suburban settings, but we can still depend on a strong contingent of renters—that means long-term opportunities for suburban Denver apartment properties, he says. While Michael looks great in a tie, we bet you didn't know he's an avid motorcyclist.