Headwinds — economic, political, social — continue to batter the real estate market nearly three years after the start of the pandemic and industry representatives see collaboration with public officials as key to revitalizing downtown Denver and meeting the demand for affordable housing and other needs.
“From the municipal levels along with private development, we need to be working together,” said Haroun Cowans, founder and CEO of Goshen Development. “I believe counties as well as local governments should be working together to see how private investors, how private developers are able to be innovative.”
In January, the number of employees working downtown was roughly 55% of the pre-COVID levels, Teeters said. Pedestrians downtown currently total about 180,000, compared to 230,000 for the same period in 2019. At the same time, businesses are operating in what several speakers called “a unique environment,” one in which stubborn high inflation has spurred the Federal Reserve Board to keep raising interest rates to slow price increases even as job growth stays strong.
The higher interest rates have reshaped investors’ expectations of the real estate market, Teeters said. “The last 10 years, we lived on cheap money. It microwaved expectations.”