A Look at the Denver Multifamily Construction Market

Over the past few years, Denver has become an increasingly popular city. Like Portland, Seattle, and other similar cities, it has boomed with economic opportunity over the past ten years. Therefore, more and more families are choosing to call Denver “home.”

So what does this influx of people do to the multifamily construction market? From the kinds of buildings being constructed to hiring patterns, it’s definitely having a large impact.

The Big Picture

In Q1 of 2019, we could see the year-over-year changes in the Metro Denver multifamily market. The vacancy rate is around 6%, which is 20 basis points higher than Q1 of 2018. There were over 19,000 units under construction during that time, and rents averaged $1,540 per month – 3.9% higher than the previous year.

Experts in the area see value in the increase of multifamily projects in Denver. While some focus on the great quality of bourgeoning units, others focus on the general pull of the city’s popularity. Either way, many seem confident that demand will continue. Therefore, they are focused on providing the supply to meet it.

The Kinds of Projects

We’ve seen an influx in Godard style townhomes, as well as high rise buildings. These structures are capable of housing a significant amount of people without leaving a large footprint. This is something that is highly desirable, as Denver is not as sprawling as some other major cities.

But because these buildings have gained popularity over the last ten years or so, they have changed some other norms in Denver construction.

Hiring Practices

Historically, Colorado construction businesses have hired in seasonal spurts. While this is still true, the more consistent and constant demand for these multifamily buildings has altered that a bit. There is now more of a need for firms to hire at a quicker rate in order to get more projects done as needed.

The desired skillset has also changed. Because many of these buildings are larger, wood is being used less frequently in their construction. So, skills and experience with lumber is less in demand than it has been in the past.

Instead, Denver firms are looking for construction professionals with experience in multifamily, high rises, metal and steel working, and other areas related to the changing market.

If you are looking for skilled professionals for your next construction project, please contact the expert consultants at Michael Page. You can also submit a job description here.