Report by Daniels College of Business real estate professor
The second quarter Denver Metro Apartment Vacancy and Rent report shows that the year-over-year average apartment rental rate has increased by $35.78 for 2019, but less than prior years.
“Rent growth appears to be slowing,” says report author Ron Throupe, associate professor of real estate at the Daniels College of Business. “Price competition for renters and wage growth has to keep pace with rent growth to justify new unit rents. In fact, rent growth has been slowing for some time now since the peak period of 2015-16.”
Results for the second quarter of 2019 for the metro Denver apartment market show an overall quarterly decrease in vacancy to 5% from 5.4%, with a 1% decrease from 6% year over year. The overall average rent increased $39.06, from $1,480.74 to $1,519.80 from the first quarter results.
The year-over-year change from Q2 2018, $1,484.02, results in an increase of $35.78. The overall median rent increased by $31.46 to $1,462.25.
“The Denver metro apartment market continues to show strong demand with 1,723 net units absorbed,” Throupe says. “So vacancy down again demonstrates that net unit absorption has kept pace with new unit construction. We can say at this point that it is likely that only a national economic change would affect this dynamic of Denver demand versus supply.”
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 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 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.