Denver apartment rents are up slightly. After falling for three quarters, the Apartment Association of Metro Denver says rents went up 1.7% percent in the fourth quarter. That $24 monthly increase puts the average rent at $1,420. The vacancy rate is 6.1 percent. More detail below from the Daniels College of Business research.
Q1 2018: apartment report reveals more building, yet less vacancy and higher rents
Daniels College of Business Real Estate Professor’s latest research
DENVER— The Denver Metro Apartment Vacancy and Rent report for the first quarter of 2018 shows that more than 2,000 units have been added Denver, yet the city has less vacancy and rents continue to climb. Vacancy in the first quarter was 6.1 percent compared to 6.4 percent in the fourth quarter of 2017. The median rent was up to $1,378.82, compared to $1,352.84 last quarter.
“Rent growth and vacancy rates both have seasonal movements with some variation across certain submarkets,” says Ron Throupe, associate professor of real estate and construction management at the Daniels College of Business and author of the report. “Historically, the vacancy rate is higher in the fourth and first quarters than the second and third quarters, which we have seen again so far this year.”
Throupe says as seasonal construction was completed and permitted construction obtained certificates of occupancy, the city added 2,443 new units added first quarter of 2018 with net absorption of 2,987 units.
“Absorption outpaced new units delivered for the first quarter of 2018,” Throupe says. “The overall average rent for the last 10 years has increased from around $800 in 2002 to more than $1,420.30 this quarter.”
The Denver Metro Area Apartment Vacancy and Rent Survey is conducted by the University of Denver’s Daniels College of Business and Colorado Economic and Management Associates, published by the Apartment Association of Metro Denver and sponsored by The Colorado Department of Housing.
This survey is conducted via mail and online submissions. It includes only those units with a certificate of occupancy. The first quarter 2018 survey includes information on 125,474 apartment units.