As market influences, our clients often ask us, “where is the market heading?” That question stems from a concern that the next recession will occur soon. The Denver apartment market’s expansion phase has lasted for 7 years resulting in amazing appreciation for multifamily owners.
Rents. Vacancy. Construction. Absorption. Where are we really heading? That is the big question on everyone’s mind as we start to feel, what seems like a shift, in the real estate market. In times of uncertainty, we look to what is sturdy and consistent; numbers and facts. On this episode, Kyle sits down with Cary Bruteig of Apartment Appraisers & Consultants.
Johnson and Malnati studied data for all multifamily property sales in Denver’s core neighborhoods in 2013. They found prices have increased an average of 89 percent over the past two years. Under Colorado law, all real property (land, buildings, improvements, etc.) must be re-appraised every two years. This occurs in each odd-numbered year. The good news is that in most cases, owners will be able to raise their rents to cover the increases in property taxes.