- Emerging Trends report ranks Denver No. 6.
- Emerging Trends is a report by ULI.
- Denver,an 18-Hour City, is a hip, alternative to 24-hour cities like New York, LA.
- Denver’s home market to remain hot in 2016, Emerging Trends report says.
Denver, is a hip, “18-Hour City” that increasingly is a Millennial magnet, scored as a Top 10 city in the prestigious Emerging Trends report.
The Urban Land Institute’s Emerging Trends report, released on Thursday during a 3-hour presentation that drew about 400 real estate leaders, ranked Denver No. 6 as a “U.S. Market to Watch.”
Denver topped gateway, 24-Hour cities such as San Francisco, Los Angeles and New York in the extensive report released by ULI and PwC, an advisory service firm.
Last year, ULI coined the term “18-Hour cities” to describe fast-growing, hip and less expensive cities outside cities like New York, San Francisco and Los Angeles. Dallas/Fort Worth and Austin were ranked No. 1 and No. 2, respectively in the Emerging Trends report.
“At this point, it is a very positive story for the Denver market for 2016,” said ULI executive Kathleen Carey, at the breakfast conference that kicked off at 7 a.m. in the Marriott City Center Hotel.
The Emerging Trends report is based on interviews with 1,800 real estate leaders nationwide.
“The strength of the economy in Colorado’s state capital seems to have put it on everyone’s list of top markets for 2016,” according to the Emerging Trends report.
“ Survey respondents and interviewees both commented on the favorable outlook for the market,” the report continues.
“Denver has taken advantage of a location and a culture that are attractive to a qualified workforce,” the report notes.
The report said the single-family housing market in Denver is “expected to remain hot in 2016.”
Several local panel members who spoke at the conference, said that one of their biggest concerns facing Denver is the need for affordable housing.
That message was echoed by panel members, even though they focused on other part of real estate.
Walter Isenberg, head of Denver-based Sage Hospitality, a hotel developer and investors, said construction defect regulations must be reformed, so builders can afford to bring much-needed entry-level condos to the market.
And Mary Beth Jenkins, a retail guru, said cities are doing their part to encourage affordable housing development.
For example, Westminster bought the former Westminster Mall site and razed it.
Jenkins, president and founder of the Laramie Co., said Westminster could have replaced the mall with a million square feet of retail to bolster its tax revenues, but instead is making workforce housing an integral part of the redevelopment of the former mall site.
Many of the luxury apartments being built in downtown Denver today would be condo towers, if construction defect rules were reformed, said Glenn Mueller, a professor at the Franklin L. Burns School of Real Estate and Construction Management at the University of Denver.
John Covert, regional direct of Metrostudy’s Colorado-New Mexico region, said that the new luxury apartment don’t necessarily represent bad news for the for-sale housing market.
“I look at these renters as our future home buyers,” Covert said.
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