Colorado is expected to need more than 100,000 new apartments by 2030 to meet a growing demand for housing, according to a recent study commissioned by the National Apartment Association and the National Multifamily Housing Council.
The findings of the study, which was produced by Hoyt Advisory Services, indicate that an additional 100,485 new units will need to be built in the state in the next 13 years in order to relieve market pressure that is being exacerbated by an aging population, international immigration and fewer home purchases.
The study also found that the U.S. as a whole is expected to need 4.6 million new apartments by 2030.
“Nationally and here in Colorado, we’re experiencing fundamental shifts in our housing dynamics, as more people are moving away from buying houses and choosing apartments instead,” according to Laura Nelson, executive director of the Colorado Springs-based Apartment Association of Southern Colorado. “We will need to reduce unnecessary fees and make it easier to build new apartments to meet the expected increase in demand in our community, which would boost our local economy in the coming years.”
The study notes that Colorado will need a variety of apartments at different price points to support demand from senior citizens to delayed homebuyers. The state’s — and country’s — existing multifamily housing inventory will also require an overhaul, according to the report, which found that 51 percent of U.S. apartments were built before 1980 and there are 11.7 million units that could need renovation or improvements by 2030.
“The growing demand for apartments — combined with the need to renovate thousands of apartment buildings across the country — will make a significant and positive impact on our nation’s economy for years to come,” according to Bob DeWitt, who chairs the National Multifamily Housing Council. “For frame of reference, apartments and their 39 million residents contribute $1.3 trillion to the national economy. As the industry continues to grow, so will this tremendous economic contribution.
Other data in the report included:
- Colorado is ranked No. 11 in the country in terms of projected apartment demand by 2030.
- There are currently an estimated 440,207 apartments in Colorado, with residents that span the age and income spectrum.
- Colorado apartment developers, owners and managers and their residents contribute $15.6 billion to the local economy annually.
For more information, visit weareapartments.org.