2021 third-quarter Denver Metro Apartment Vacancy and Rent Report
Researchers at the University of Denver’s Daniels College of Business released the third-quarter Denver Metro Apartment Vacancy and Rent report for 2021, which showed rent growth and a low vacancy rate. The average rent for the Denver metro area is now $1,726.36 with a vacancy rate of 3.8%.
“This rent increase phenomenon is not a local condition,” says report author Ron Throupe, associate professor of real estate at the Daniels College of Business. “Other metropolitan areas are also experiencing similar apartment market conditions.”
The third-quarter result showed an increase of $74.92 from $1,652.44. Last quarter is still a historically large increase for any quarter result. The average rent change year over year from 2020 is now at $204.70 ($1,726.44 versus $1,521.66). This rent change is a 13.5% increase for the year as of Sept. 10, 2021.
“This quarter’s increase can partially be explained by units that turned over being repriced, incorporating rent increases from the second-quarter rent surge,” Throupe says. “In recent years, the third-quarter rent change results tend to be mixed (positive or negative) in comparison to second-quarter results, but typically are a smaller change. Sometimes the change is negative as the summer wanes and the typical seasonal negative rents change effects of late fall take hold.”
The Denver metro apartment market added 2,400 new units to inventory. This unit delivery kept pace with absorption, which logged in at 1,862, resulting in a minor uptick in vacancy from 3.7% to 3.8%. The overall net absorption of units for the year 2021 is now at 14,365 net units.
“Total net absorption for 2021 has now surpassed the boom year of 2018, which saw 13,708 units absorbed,” Throupe points out.
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’s published by the Apartment Association of Metro Denver.
For interviews with Ron Throupe, please contact Kristal Griffith at 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.