Report by Daniels College of Business real estate professor
The third quarter Denver Metro Apartment Vacancy and Rent Report shows that vacancy decreased from 4.7% to 5% this past quarter, with a year-over-year decrease of 1.2% from 5.5%.
“These third quarter results, as has been the scenario for the past three years, is a seasonal give back in rents and typically a slight increase in vacancy,” says report author Ron Throupe, associate professor of real estate at the Daniels College of Business. “Vacancy for this third quarter did not follow the recent historical data but instead decreased.”
The Denver metro apartment market continues to show strong demand with 2,917 net units absorbed for the third quarter. So with overall vacancy down, the results demonstrate that net unit absorption continues to keep pace with new unit construction.
The report also shows that the overall average rent decreased $13.54, from $1,519.80 to $1,506.36, from the second quarter results. The year-over-year change from the third quarter of 2018, $1464.90, results in a yearly increase of $41.46.
“So any sensationalizing of ‘rents are down’ is actually stating the seasonal expectations,” Throupe says. “In addition we have heard of rent concessions being increased at new communities. But this could be submarket specific, since economic vacancy is actually down for the quarter.”
The Denver Metro Area Apartment Vacancy and Rent Report 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 and sponsored by the Colorado Department of Housing.
For interviews with Ron Throupe, please contact Kristal Griffith at Kristal.Griffith@du.edu. To obtain a copy of the Denver Metro Area Apartment Vacancy and Rent 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.