While the multifamily housing market was hit fairly hard during the COVID-19 downturn, it still performed better than most sectors and is expected to recover starting this year, which is good news at Miller’s Landing, a new multi-use development in Castle Rock, CO.
A report from international real estate giant CBRE predicts a return to pre-COVID vacancy levels in multifamily housing this year, with a full market recovery by early 2022.
Miller’s Landing is an exciting new multi-use development in Castle Rock. We’re creating a dynamic town center with retail and dining options along with modern office space and attractive multifamily housing options. Miller’s Landing is located in a strategic location in town, with easy access via bicycle and walking paths to downtown and adjacent Philip S. Miller Park, the region’s premier sports and outdoor recreation facility.
Urban Multifamily Housing Loses Luster as Suburban Markets Grow
Data shows that the economic downturn affected the urban multifamily housing sector much harder than suburban markets. CRBE predicts suburban areas will lead the recovery of the multifamily sector, with urban markets taking longer to rebound.
CBRE lists five factors for the loss of appeal in urban markets:
- The growth of remote work, allowing people to live where they prefer instead of close to work.
- The shutdown of urban amenities such as restaurants, theaters, etc., which reduced the appeal of living in crowed urban areas.
- The need/desire for increased living space.
- The fear of contracting COVID-19 on public transit, which reduced ridership.
- A desire by many residents to have increased access to outdoor spaces and activities.
Other factors for the demise of urban multifamily housing market include the high cost of urban housing and the maturation of the Millennial generation, which is at a stage where many Millennials are starting to prefer living in less-dense suburban areas.
The expected growth of job opportunities this year will also result in a large number of younger people moving out of their parent’s homes, or homes they shared with others to save money during the economic downturn, and seeking opportunities to live independently.
Investment Expected to Grow
As the economy recovers, investors are expected to re-enter the market and spur development. CBRE reports the following:
“With steadily improving market conditions, multifamily investment volume is expected to increase in 2021. CBRE Research predicts U.S. multifamily investment volume will reach about $148 billion next year, lower than 2019’s record level of $191 billion but a 33% gain over the 2020 estimate of $111 billion.”
CBRE Multifamily 2021 U.S. Real Estate Market Outlook
About Castle Rock, Colorado
Miller’s Landing is poised to be at the forefront of this recovery in multifamily housing. Our location in Castle Rock places us as one of the most desirable places to live in the south Denver metropolitan area.
Castle Rock is a popular and growing community with an outstanding lifestyle. Located on the I-25 corridor, its high-quality of life and easy access to Denver to the north and Colorado Springs to the south makes it a popular community with well-educated professionals. The town regularly ranks as one of the best communities to live and work in the country.
About Miller’s Landing
Miller’s Landing is an exciting new 65-acre multi-use business and residential real estate development located near downtown Castle Rock in the heart of town.
Miller’s Landing will feature a pedestrian-friendly town center complete with restaurants, retail and entertainment options. It will also include multifamily housing, modern offices, large tracts of open space with views of the Colorado Front Range and easy access to outdoor recreation.
Exploring the Fringes of the Future
Miller’s Landing is exploring the fringes and creating a path to new personal, professional and recreational opportunities every day.
It’s an exciting place to build the future and make lasting memories. Join us. Let’s build the future together!