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Sensational Multifamily Market Shows Weakness

DENVER-In the first since 1990, the booming multifamily rental market is weaker than it was in the beginning of the year, according to a report by Grubb & Ellis. However, buyers next year could reap rewards down the line, it adds.

By John Rebchook | Updated on December 14, 2001

DENVER-A sensational multifamily rental year in the metro area is drawing to a close, in stark contrast to the office market, according to a report by Grubb & Ellis. “Unfortunately, however, it appears that the degrading economy is finally permeating its way into the multifamily housing market,” the report notes.

Indeed, this will be the first year since 1990 when the market is not as strong as it was in the beginning of the year, according to the report. Most of the softness is taking place along the large, southeast suburban market, where most of the overbuilding is taking place, the report says.

“It’s anticipated that the economic slump will cause a significant drop in the number of potential purchasers, which in turn will create less demand and competition and consequently minimize the buying frenzy that has developed over the past decade,” Grubb & Ellis says.

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