Source: Ed Sealover of Denver Business Journal
We desperately need more housing to make things more affordable around here and you would think that everyone would agree. To our surprise, there is a group that is actually fighting for more restrictions on residential growth for 10 Colorado counties, including Denver. Initiative 66 is attempting to regulate new housing by limiting the number of housing permits that can be issued.
Source: Sydney Bennet of Apartment List
Denver is officially one of 20 finalists for Amazon’s second headquarters. Some news sources, like the New York Times, even believe Denver is a likely pick. HQ2 would bring an additional 50,000 high-wage workers immediately, and 66,250 additional workers over a ten year period. That’s enough people to fill Mile High Stadium 1 1/2 times.
So what will happen in our already crunched housing market? Apartment List projected the rent growth for Denver would be between 0.8% and 1.1% per year. That’s an additional $7,700-11,500 more in renters will pay over a ten year period.
Even without Amazon’s HQ2, Denver will still experience significant job and rent increases as it becomes a thriving tech hub.
Read more of Apartment List’s full analysis on the impact of the proposed headquarters here:
Source: Jon Murray at The Denver Post
The Denver Green Roof Initiative passed on November 7th by 54.3% of voters, and became effective on Jan. 1st. Here’s a breakdown of what this means:
Reduce Denver’s urban heat island effect from heat radiating issues. This happens when human activity causes urban or metro areas to become significantly warmer than surrounding rural areas.
Rooftop gardens on all buildings with at least 25,000 square feet and residential buildings over 4 stories. Depending on building size, 20-60% of available roof space have to have green-roof coverage (industrial buildings only have to have 10%). –
- Cost for developers.
- Fees that will be charged for buildings that get variances.
- Watering requirements in Denver’s already dry climate.
- The major structural alterations that will be required to replace roofs on buildings that weren’t built for green roofs.
* This replacement clause is one of the biggest reasons that this initiative faces so much opposition and it makes Denver’s green-roof initiative the strictest in the nation. Toronto and San Francisco are considered “green-roof pioneers” but they do not require existing buildings to replace their roofs, only new ones.
So what’s next?
The city is implementing the initiative but changes are to be expected. In May, the city will re-evaluate what changes need to be made and as of right now, the Denver Department of Public Health & Environment is putting together a task force to review the initiative.
Source: Kelcey McClung at the Denver Business Journal
Affordable housing options in Denver are scarce but there is a group that is doing something about it! A group of 8 funders have partnered to invest around $25 million to create over 700 affordable homes for low-income housing in the Denver area, within the next five years. Not only are they providing housing, the trust is also going to assist families in accessing early childhood education, workforce training and placement, healthcare, and wealth-building opportunities. This won’t completely solve the affordable housing problem but this is an AWESOME start!
Source: Caitlin Hendee at the Denver Business Journal
Real estate development is seeing a parking lot and turning it into a district, which is exactly what The Rockies are doing. The west parking lot at 19th and Wazee will be transformed into what will be known as “the Stadium District,” an impressive and dynamic mixed-used development that will connect LoDo to Union Station and RiNo. This block will have an outdoor plaza, the Rockies Hall of Fame facility, a hotel, retail, entertainment, residential, offices, and food and beverage spaces.
Source: Denver Business Journal
Denver real estate has thrown us an interesting curve ball and we love where it’s taking us. Golden Triangle, one of Denver’s oldest neighborhoods, is the most expensive area to rent (we’re talking median rent of $2,100 for a one bedroom!). The art scene, local restaurants and bars, and all of the happening festivities draw people into this culturally rich, upscale neighborhood. But wait for it….
It may be ridiculously pricey to rent in Golden Triangle, but it’s not ridiculously pricey if you want to buy, with properties for sale starting at $219k.* Which means you can buy in this hood and have a mortgage that is less than the median rent. We’ll take it!
*at the time this article was written.
Source: We Are Apartments
Denver placed 9th out of 50 metro cities for hardest places to add apartments. Denver’s biggest barriers to growth are the lack of additional land to develop within the county and city regulations. Factor in expensive land and high construction costs and it’s no wonder that affordable housing is becoming more and more difficult to find. Read the full report or:
Source: Aldo Svaldi at The Denver Post
Millennials catch a lot of flak these days for not buying homes. But median home prices in Denver prevent a lot of first-time buyers from entering the market. Millennials are aging into homeownership as the labor market is booming and wages are growing, which is starting to drive demand. If only housing inventory could rise to make life easier for Millennials looking to buy.
Source: Aldo Svaldi at The Denver Post
Metro Denver apartment rents rose for the third straight month in March, erasing all the declines that went in favor of tenants last fall, according to a report Tuesday from Axiometrics, a Dallas firm that tracks multi-family housing trends.
Metro Denver’s average effective apartment rent stood at $1,411 in March, up $22 from February and $51 higher than the recent low of $1,360 measured in December, according to Axiometrics.