(To read more on the multifamily market, click here.)
DENVER-The metro area apartment building activity got off to a slow start at the beginning of the year. That is good news for a market that has been struggling with an over-supply and a lack of demand.
The Home Builders Association of Metropolitan Denver's most recent permit activity report, which tracks building activity in all of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert and Jefferson counties, found that only 72 permits were issued for rental units in January. That is a 74.85% drop from January 2005, when 284 apartment building permits were issued within the eight-county region.
This year, January's only apartment permit activity was in Arvada, a city just west of Denver. All 72 permits were issued there, and it was likely for one project.
Mike Rinner, senior analysis at the Genesis Group, tells GlobeSt.com that the drop in apartment building activity is nothing to be concerned about. "I'm not worried about apartment construction at all," Rinner tells GlobeSt.com. "The over-supplied apartment market would welcome continued weakness in apartment activity, which accounted for only 4.2% of total residential permits in January."
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