The latest research indicates that for the third quarter of 2016, the average apartment rent for the Metro Denver area was $1,368 per month, a decrease of $3 per month, while the median rent was $1,329 per month, an increase of $5 per month. 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.
According to Daniels Associate Professor Ron Throupe, the data suggests that new class A units are holding up the average rental rate. The overall vacancy rate decreased from 5.4 percent to 5.1 percent quarter over quarter. The net absorption for the quarter was 3,641 units exceeding the total number of new units added of 2,971, resulting in a vacancy reduction.
For the year the Denver metro market has absorbed 12,493 units, while adding 7,222 new units as of the third quarter.
“The quarterly net absorption continues to be impressive with a third quarter absorption that exceeded the strong second quarter results. This absorption continues to show the desirability of the Denver market, supported by an increase of in-migration, a decreasing unemployment rate, and increased business activity. This year’s total absorption count shows the strength of household formations and desirability of Denver,” says Throupe, Ph.D. associate professor at Daniels and co-author of the report.
To obtain a copy of the 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.