Fort Collins is now firmly in the midst of a major supply wave, as apartment deliveries on a trailing-year basis briefly edged over 1,000 units in later 2018.
Over 1,500 additional units were underway at the start of 2019, including several large projects slated to have their first move-ins in 19Q1 or 19Q2, some of which are now actively preleasing. Prior to 2017, fewer than 1,000 units were underway at any point in the current cycle.
The frequency of concessions decreased in 2017, but jumped significantly in 2018 as several major properties initiated their lease-ups. In this newly competitive leasing environment, rent growth has once again slowed after rebounding sharply in 2017.
Fort Collins has economic and demographic trends that certainly warrant outsized development: Employment has almost universally grown at a rate of 3% or higher throughout the recovery, and the population has grown by nearly three times the national average over the past ten years.
Still, the metro has yet to face a supply test like it does today, and the leasing environment (especially for higher-end properties) will likely be fairly competitive for at least another year.
(information provided from CoStar)