Thoughts of where the market is heading are increasingly on our clients’ minds. Is the Denver rental market about to peak? Without a clear answer, it’s helpful to look at the factors that determine the direction of the market.
Economists describe the four phases of the real estate market cycle as Recovery, Expansion, Hyper Supply, and Recession. The expansion phase is characterized by rising rents, declining vacancy, and escalating apartment construction. The hyper-supply phase, during which the market peak is reached, is characterized by robust construction activity, increased vacancy, and the flattening of rental rates. Denver is clearly in one of these two phases that are both near the top of the market.