2018 third quarter apartment report by Daniels College of Business real estate professor
The third quarter Denver Metro Apartment Vacancy and Rent report shows that vacancy and rent dropped slightly from last quarter. But a special section of the report focuses on the new apartments under construction in Denver.
Report author Ron Throupe, associate professor of real estate and construction management at the Daniels College of Business, says Denver has a roughly 30-month completion schedule with 30,000 apartment units in process that would yield 1,000 units per month—or 12,000 units produced per year for the near future.
Using data from the State Demography Department, Throupe calculates that the expected number of households created in the Front Range would be approximately 22,200 per year.
“This will lead to an expected 2,600 units of excess vacancy per year, resulting in an overall market vacancy of just over 7 percent,” he said. “That rate is not a travesty. It is still considered a solid market, and the unit slack could be absorbed in the following years.”
According to Throupe’s research, the average rent decreased $19.12 this quarter, down from $1,484.02 to $1,464.90. The vacancy rate is 5.5 percent, with 2,570 units added for a total of 345,037 units.
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. It is published by the Apartment Association of Metro Denver and sponsored by the Colorado Department of Housing.
Conducted via mail and online submissions, the survey includes only those units with a certificate of occupancy. The third quarter 2018 survey includes information on 125,654 apartment units.
For interviews with Ron Throupe, please contact Kristal Griffith at Kristal.firstname.lastname@example.org. To obtain a copy of the Denver Metro Area Apartment Vacancy and Rent Survey report, please contact Christopher Dean, vice president of communications for the Apartment Association of Metro Denver, at 303-329-3300 or visit www.aamdhq.org.