The fourth quarter Denver Metro Apartment Vacancy and Rent report shows that apartment vacancy and rents have stabilized.
“The Denver Metro apartment market continues to show strong demand with 2,783 units absorbed compared to 3,876 new units added for the quarter,” says report author Ron Throupe, associate professor of real estate at the Daniels College of Business. “This continued strength in absorption (13,708 for 2018), has kept vacancy stable even with 12,324 new units added for 2018. The number of units absorbed for the year is exceptional and greater than expectations.”
The yearly number is the highest ever reported within this report, only approached by a 1987 yearly number and last year’s total absorption of 11,821 units for 2017.
“These record absorption numbers could put into question the concern of overbuilding,” Throupe says.
Results for the fourth quarter of 2018 show a mild overall increase in vacancy to 5.8 percent from 5.5 percent for the Denver Metro apartment market. The overall average rent slid $8.81 to $1,456.09.
The overall median rent retreated by $4.21 to $1,413.69. This seasonal negative rent growth for the fourth quarter results is typical, but less than prior years. The overall year-over-year average rental rate has increased by $60.72 for 2018.
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.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.