The Denver Metro Apartment Vacancy and Rent report for 2nd quarter 2017 shows an extension of a bullish rent move. The average rent for this quarter is $1,419.74 up from $1,382.76, which is a change of $36.98, for yet another new rental high. The average vacancy rate was 5.0 percent down from 5.7 percent for 1st quarter. Median rent was $1,376.79 versus $1,345.58, for a change of $31.21 for the quarter.
“The rent growth trend for this market cycle continues to amaze some, but exemplifies the strength and magnet of the Denver market for relocation and job growth,” says Ron Throupe, associate professor of real estate and construction management at the Daniels College of Business and author of the report. “The unemployment rate for Colorado is 2.3 percent, the lowest state in the U.S., with Denver at 2.4 percent. Employees need a place to live and whether it is by choice, affordability, or happenstance, apartments remain a strong destination.”
The net absorption for the quarter was 4,348 outpacing new units added of 2,152. Year to date there have been 9,012 net units absorbed, making it one the stronger years on record for absorption. For 2016 the year total net absorption was a robust 11,056 units.
Given further increases in the number of new additions to the inventory this quarter and over the last two plus years, the continued trend in the Denver metro unemployment rate, normal seasonal vacancy changes, continued immigration, and an increase in metro area natural population, continued absorption of units is expected during the year. Rent growth and vacancy rates both have seasonal movements with some variation across certain submarkets. Historically the vacancy rate is higher in the fourth and first quarters than the second and third quarters.
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 Dept. of Housing.
This survey is conducted via mail and online submissions. It includes only those units with a certificate of occupancy. The second quarter 2017 Survey includes information on 121,783 apartment units.
For interviews with Ron Throupe, please contact Kristal Griffith at Kristal.email@example.com. 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.