Re: July 27 business news story.
Rising metro Denver rents are the product of a number of factors, many beyond the control of the apartment industry.
Higher prices for land in desirable locations, as well as rising costs for construction labor and materials, make it very difficult to build new apartment communities in metro Denver for less than $200,000 per unit.
Government fees and requirements on new apartment construction can add $10,000-$50,000 per unit.
Higher development costs translate into higher rents.
Denver’s proposed impact fees on new construction, while designed to support affordable housing, could have the opposite of their intended effect by significantly adding to the cost of developing new apartment communities, further driving up rents charged to consumers.
Letap work together to find ways to meet the housing demand from the region’s rapidly growing population. More development will help everyone by meeting the region’s housing needs and moderating rents.
Rocky Sundling, ٱԱ
The writer is a regional vice president for the National Apartment Association.
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