The city of Denver recently moved past Memphis, TN into 21st place on the list of most populous cities in the United States at 663,862 residents. This latest estimate from the US Census Bureau from July 1, 2014 represents an astounding gain of over 10% population growth since the last official census in 2010. A number of other cities around the Denver metro area are growing at nearly the same clip, and Broomfield actually outpaced Denver at over 11% growth. With Denver’s growth rate and projected growth, it will not be long before we enter the top 20. The only city ahead of Denver in the rankings who grew faster during this period was Austin, TX at 12.5%.
What does this mean for housing prices?
Well, despite the current apartment building boom, adding over 10,000 new rental units in the city of Denver during this same time frame, new demand from migration is still outpacing new supply, leading to record rent increases, measured year over year. This is also the case in the for sale market, where supply is at near record low levels, pushing year over year appreciation to double digit gains.