Housing construction on the decline in Denver

Denver is poised to see an 18% drop in new housing units in 2024, according to Census Bureau data.

Why it matters: The housing shortage is what's driving high prices in Denver.

By the numbers: The total projected housing units this year is expected to reach 17,000, or 56.5 per 10,000 residents. That's down from the roughly 20,600 built in 2023, the data shows.

The big picture: The local figures reflect a national downturn as higher interest rates for home loans pinch construction, according to the National Association of Home Builders.

• Labor and lot shortages are also weighing on builders, per the group's latest survey.

What we're watching: The Biden administration recently awarded Denver a $4.5 million grant to address the issue. The city will use the money to streamline permitting and offer loans to affordable housing developers, both steps that officials suggest will boost construction in the future.