Apartment vacancies in metro Denver in the third quarter dropped almost a full percentage point to 3.9 percent, according to the latest Denver Metro Area Apartment Vacancy and Rent Survey.
In the second quarter, the vacancy rate was 4.7 percent.
From second to third quarter, the average rent in the metro area rose to $1,145 per month, about a 2 percent increase over the previous quarter when the average rent was $1,117 per month.
The data in the report are compiled quarterly by the University of DenverDaniels College of Business and Colorado Economic and Management Associates.
Net absorption of apartments in Denver increased quarter-over-quarter, with 4,470 units absorbed in the third quarter, compared with 3,127 last quarter.
“The third quarter absorption yielded impressive results that exceeded the strong second quarter results, demonstrating the desirability of the Denver market, supported by an increase of in-migration, a decreasing unemployment rate, and increased business activity,” said Ron Throupe, associate professor at Daniels College of Business and co-author of the report.
“This year’s total absorption count shows the strength of household formations and desirability of Denver. In 2014, Colorado and Denver have become highly ranked locations by many surveys on business and lifestyle,” Throupe said.