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- May 11, 2021

Multi-Family in High Demand

"OUR COMMUNITY IS FACING A HOUSING SHORTAGE"

-ROB GRAHAM, partner of The Graham Group

Cheyenne has seen a boom in population growth starting the second half of 2020 and continuing now. Across the country Americans have been fleeing urban areas for a more rural setting. Our community is facing a housing shortage problem with a real fear that we will not be able to keep up with the expected demand. We have seen some estimates as high as a 5,000 housing unit shortfall over the next 5 years.

FE Warren Air Force Base is replacing all its land-based missiles, this project alone is expected to bring over 1,000 jobs to Cheyenne and will kick of starting 2023. We have seen companies already starting to look around town and prepare for the job. This required workforce coming to town will even further stress the housing demand. We expect the majority of these workers will prefer to rent vs own and may not have much of a choice with an extremely low single family home inventory on the market for sale.

In the last few months we have seen Multi-Family properties trade at as low as 5% and 6% capitalization rates. The current Cheyenne rental vacancy rate is extremely low at approx. 2.5 % and is expected to go even lower. Established apartment complexes in town have waiting lists for renters wanting to move in. Some new projects are on the board to help relieve the rental housing shortage but not nearly enough to cover the expected requirement.

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