A no vacancy sign is displayed outside of an apartment building on Pearl Street in Capitol Hill. Vacancies in Denver are at near all-time low. (The Denver Post file)

Metro Denver apartment vacancies dropped to 3.9 percent in the third quarter, the second lowest recorded rate.

Finding a place to lease was only tougher during the third quarter of 2000, when the information-technology boom made Denver one of the top places to live in the U.S. and the vacancy rate dropped to 3.7 percent, said Patty Silverstein, chief economist for the Metro Denver Economic Development Corp.

"It's a near historic low ," she said. "You are going to start seeing a continual escalation of rental rates. You definitely will have to pay a little bit more to get that same apartment."

Rents averaged $762 in the second quarter of 2000, compared with $1,145 during the third quarter of 2014, and up from $1,117 in the second quarter and $1,073 in the first, according to figures released Friday in the Denver Metro Area Apartment Vacancy and Rent Survey. The statistics were compiled by the University of Denver's Daniels College of Business and Colorado Economic and Management Associates.

Silverstein said the drop to 3.9 percent from 4.7 percent in the second quarter was surprising because of the number of new apartments being built. She said 9,145 new apartments were built in 2013, 8,700 new apartments are expected to come online in 2014 and another 8,700 in 2015.

"Even in the face of construction workforce shortages, apartment communities continue to sprout up across the metro area," said Mark Williams, executive director of the Apartment Association of Metro Denver. "However, it's still hard to keep up with demand, which is growing at least as quickly."

The report noted that more people are moving to Colorado than are leaving, with net in-migration projected at more than 55,000 next year, far above the historical annual net in-migration of 40,000.

"You just look at the lease-up that is going on, it is just phenomenal," report co-author Ron Throupe said. "Denver is becoming one of the major cities. It is no longer secondary."

Rapidly rising home prices have pushed potential buyers out of the market and into rentals, Silverstein said. But she said said people with professional aspirations also are flooding the market.

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Rents soar as apartment vacancies in metro Denver near all-time low

The Beach Company has begun the demolition of the Sergeant Jasper apartment building. Leroy Burnell/Staff

The Beach Company has begun the demolition of the 14-story Sergeant Jasper apartment building on Colonial Lake, a project that will be completed in late 2015.

Company officials have said they envision a makeover of the site with a mix of housing, apartments, commercial and retail space and a parking garage that will cover areas where Broad Street, Barre Street and Lockwood Boulevard are anchored. Construction height would range between four and seven stories.

According to a news release from the Beach Co., the work will be performed in three phases.

The first phase began last week and will include non-structural, interior demolition, including removing mechanical systems.

Broad Street Market, on the building's ground floor, is expected to remain open until its lease runs out in February.

The second phase will begin in March. It will include the demolition of the first-level commercial section, which surrounds the main structure.

The building then will be scaffolded and screened, and will be dismantled floor-by-floor, starting at the top.

The final phase, which includes preparing the site for redevelopment, will be completed in late 2015.

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Sergeant Jasper demolition has begun

With students heading to college in record numbers, local institutions are constructing everything from new dormitories to academic buildings, hoping to attract the best and brightest students and professors. And many of the projects are emphasizing sustainable design.

The good news is that a number of major institutions [are] poised to move forward with major expansion projects, said Richard T. Anderson, president of the New York Building Congress. Indeed, a recent report from the group found that despite a slowdown in construction by the government sector, colleges continue to invest in their futures.

The citys 105 universities and colleges have spent a combined $2 billion on maintenance and new facilities in each year from 2010 to 2012, and are expected to put in another $10 billion through 2017, or an average of $9.5 million each.

Since 2003, the City University of New Yorks student population has increased by nearly 50 percent, requiring an expansion. According to CUNYs Vice Chancellor for Facilities Planning, Construction and Management Iris Weinshall, CUNYs goal, along with new projects, is to redevelop at least a quarter of its facilities with a Leadership in Energy & Environmental Design (LEED) certification by 2017. As these include many historic and landmark buildings, Weinshall noted, this is a huge and important task.

Lehman Colleges new Science Hall, in fact, which opened for classes in spring 2013, has a LEED Platinum certification, the top of four levels, from the US Green Building Council.

And Lehmans LEED Silver four-story School of Social Work is the first of a three-phase campus within a campus dedicated to the sciences.

A new building at the New York City College of Technology sits on the former site of the Klitgord Building in Brooklyn.Photo: Perkins-Eastman

The facility was constructed with $70 million in funding provided by New York State through the CUNY Capital Program. Funding of $1.5 million for the rooftop greenhouse was provided by an allocation from the New York City Council.

Other recent projects, including the CUNY School of Law and the Summit residence hall at Queens College, have Gold certification, while Hunter Colleges School of Social Work and Bronx Community Colleges North Hall and Library have Silver.

There are also several research facilities in the CUNY construction pipeline, including an advanced research complex on the City College campus in Harlem, and the new College of Staten Island dormitory, which will aim for LEED Gold.

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A boom in students creates a boom in construction at colleges

By Ashley Barker abarker@scbiznews.com Published Oct. 20, 2014

Demolition of the 14-story Sergeant Jasper apartment building in downtown Charleston began last week, according to a news release from The Beach Co., which manages the property.

Construction fencing was installed, nonstructural interior demolition was started and mechanical systems were removed, the company said.

During the next year, work will be completed in three stages: interior pre-demolition, exterior demolition and site preparation, the news release said.

Broad Street Market, which has a lease within the building, will remain open until February, the company said.

In March, demolition of the first-level commercial section, which surrounds the main structure on Broad Street, is scheduled to begin. The building will then be dismantled floor by floor starting at the top and working down, according to the company.

The site is expected to be ready for redevelopment late next year. The Beach Co. and the city of Charlestons planning department have been working on plans to redevelop the area since 2010, but nothing has been announced yet.

Residents of the apartment building, which opened in 1950, received a letter from the landlord in February saying they would have to move out. The 221 apartments were vacated from May through August.

Reach staff writer Ashley Barker at 843-849-3144 or @AshleyNBarker on Twitter.

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Demolition begins on Sergeant Jasper apartments in downtown Charleston

WASHINGTON Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction a volatile category which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million. That also reflected the strength in apartment building. Permits for multi-family buildings rose 7 percent in September, compared to a 0.5 percent drop in permits for single-family houses.

Other indicators reflect the continued to shift to rentals. The residential component of the American Institute of Architects billing index stood at 58.1 in August. That index is more heavily-weighted to multi-family housing and any reading above 50 signals growth.

Meanwhile, real estate sales have failed to get much traction in recent months. Price growth is slowing, yet the surge in home values through the middle of last year has made affordability a challenge for many would-be buyers. Homebuilders are also feeling slightly less optimistic.

The recent turmoil in the financial markets caused the average 30-year fixed mortgage rate to drop to a 52-week low of 3.97 percent. That should help spur some additional buying, but its unlikely to be enough to suddenly boost construction.

While the drop in mortgage rates likely will prompt stronger home sales by the turn of the year, we dont expect a significant upward trend in construction to re-emerge until next spring, said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Those increases are substantially larger than wage growth, which has barely exceeded inflation by increasing at roughly 2 percent a year. Without wages rising more strongly, it becomes difficult to save for a down payment and qualify for a mortgage.

Originally posted here:
Pace of rental construction swells

Published October 17, 2014

WASHINGTON Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

The Commerce Department says housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes. Most of the gains came from apartment construction, which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting, instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months, although the pace is volatile from month to month.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million.

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US home construction rises 6.3 percent in September, fueled by building more apartments

WASHINGTON (MarketWatch) The pace of home construction climbed last month on a jump in apartment building, according to government data released Friday.

Construction started on new U.S. homes rose 6.3% in September, with the annual rate hitting 1.02 million, following a sizable August drop. Septembers starts rate matched the consensus forecast from economists polled by MarketWatch.

Signaling a continuation of the markets rebound, the pace of total home-building starts was up 17.8% from the year-earlier period. However, the starts rate is far below an average of 1.5 million over the 20 years leading up to a bubble peak.

Analysts warn against reading too much into a single months report. A confidence interval of plus or minus 9.3% for Septembers overall starts growth shows the government isnt sure whether the pace of construction rose or fell last month.

One factor that could help support the housing market a bit is the recent drop in mortgage rates, which makes loans cheaper for prospective borrowers. However, low mortgage rates alone wont be enough to spur more housing activity, experts say.

Rather, strong and consistent jobs growth is needed for a sustained pick up in home building and buying. Otherwise, the pace of the household formation will remain slow, with families and friends doubling up in homes to save money.

Apartments led construction growth in September, but economists prefer to see more building of single-family homes. Putting up a single-family homes costs more and creates more jobs than building one apartment. The construction pace for single-family homes rose 1.1% in September, while apartment starts in buildings with at least five units zoomed up 18.5%, the government reported.

The details of the construction data...dont make us feel any more positive about the single family segment of the housing market, which continues to plod along at a frustratingly slow pace, Richard Moody, chief economist at Regions Financial Corp., wrote in a research note.

For each apartment start during September in a building with at least five units, there were about 1.8 single-family-home starts. That ratio is far lower than a long-term average of about 3.4, and down from about 2.1 a year earlier. As home builders increasingly turn toward apartments, that will narrow the housing sectors contribution to the economy.

A gauge of the outlook for construction also showed more growth for apartments. The annual pace of permits for new construction, a sign of future demand, inched up 1.5% to 1.02 million in September from 1 million in August. Permits for single-family homes declined 0.5% in September, while permits in buildings with at least five units rose 7%.

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Economic Report: Apartments lead Septembers housing-starts growth

Housing construction picked up in September, buoyed by a surge in apartment-building.

Housing starts increased 6.3% from August, according to new figures from the Census Bureau, a pace a bit faster than analysts expected. That figure was driven by a 18.5% jump in starts for buildings with five or more units. Building permits an indicator of future construction were up 1.5% on the month.

Home builders say they're seeing increased demand as interest rates remain low and the economy gradually improves. Meanwhile, multifamily developers have been pushing to keep up with high demand for apartments as more households rent and more young adults are moving out on their own.

Year to date, apartment construction is up 22.7%, and completions of buildings with five or more units is up 43%. However, the new supply is having relatively little impact on rents, market-watchers say, as demand is growing nearly as fast.

September's growth was fastest in the West and the South.

Keep an eye on housing and real estate in Southern California. Follow me on Twitter at @bytimlogan

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Housing starts speed up in September, led by new apartments

Construction firms broke ground on more apartment complexes in September, pushing up the pace of U.S. homebuilding.

Housing starts rose 6.3 percent to a seasonally adjusted annual rate of 1.017 million homes, the Commerce Department said Friday. Almost all of the gains came from apartment construction a volatile category which increased 18.5 percent after plunging in August.

The sluggish recovery and meager wage growth has left more Americans renting instead of owning homes. Apartment construction has surged 30.3 percent over the past 12 months.

Starts for single-family houses rose just 1.1 percent in September, contributing to an 11 percent gain during the past 12 months.

Applications for building permits, a good sign of future activity, increased 1.5 percent to an annual rate of 1.018 million. That also reflected the strength in apartment building. Permits for multi-family buildings rose 7 percent in September, compared to a 0.5 percent drop in permits for single-family houses.

Other indicators reflect the continued to shift to rentals. The residential component of the American Institute of Architects billing index stood at 58.1 in August. That index is more heavily-weighted to multi-family housing and any reading above 50 signals growth.

Meanwhile, real estate sales have failed to get much traction in recent months. Price growth is slowing, yet the surge in home values through the middle of last year has made affordability a challenge for many would-be buyers. Homebuilders are also feeling slightly less optimistic.

The recent turmoil in the financial markets caused the average 30-year fixed mortgage rate to drop to a 52-week low of 3.97 percent. That should help spur some additional buying, but it's unlikely to be enough to suddenly boost construction.

"While the drop in mortgage rates likely will prompt stronger home sales by the turn of the year, we don't expect a significant upward trend in construction to re-emerge until next spring," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Home prices rose 6.4 percent in August compared with a year ago, according to real estate data provider CoreLogic. This marks a substantial slowdown. Home values had chalked up annual gains of as much as 12 percent toward the end of last year.

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Apartments Pushed up US Homebuilding in September

WASHINGTON (MarketWatch) -- Construction started on new U.S. homes rose 6.3% in September, bouncing up after a sizable August drop, led by growth for volatile apartment building, according to government data released Friday. The annual rate of total housing starts rose to 1.02 million last month, just about matching economists' consensus forecast, from 957,000 in August, the U.S. Commerce Department reported. The construction pace for single-family homes rose 1.1% in September, while apartment starts in buildings with at least five units zoomed up 18.5%. The pace of overall construction starts was up 17.8% from the year-earlier period, signaling a continuation of the market's rebound. The annual pace of permits for new construction, a sign of future demand, inched up 1.5% to 1.02 million in September from 1 million in August. Permits for single-family homes declined 0.5% in September, while permits in buildings with at least five units rose 7%. Economists caution over reading too much into a single monthly report. A confidence interval of plus or minus 9.3% for September's overall starts growth of 6.3% shows that the government isn't sure whether the pace of construction rose or fell last month.

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U.S. housing starts rise 6.3% in September