Denver economists expect the surge in apartment construction to slow down over the next year as demand and financing wane. Renters have already begun to respond to rising prices and banks are beginning to look for new investment projects. Many millennials are giving up their downtown rentals in favor of housing on the outskirts of the city, where they can afford larger homes and more land.
In spite of these changes in the housing market, almost 25% of units under construction this summer were downtown in high-end neighborhoods. Most individuals in the industry agree that this has oversaturated the high-end apartment market in Denver. In other words, the city has an influx of expensive buildings in expensive neighborhoods do not suit the majority of people moving to the city.
As demand continues to drop many builders are moving their efforts to Denver city borders where land is cheaper and less financing is required.
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