The first quarter Denver Metro Apartment Vacancy and Rent report shows that apartment rents have increased and vacancy has decreased, which is typical for the season.
“Once again demand for units was impressive with 5,552 net units absorbed while 3,959 units were added, leading to the reduction in vacancy to 5.4%,” says report author Ron Throupe, associate professor of real estate at the Daniels College of Business. “As for each yearly cycle, it is best to assess market conditions after the second quarter results, which tends to be the high point in the rent cycle each year.”
Results for the first quarter of 2019 show a decrease in vacancy to 5.4% from 5.8% for the metro Denver apartment market. The overall average rent increased $24.65 to $1,480.74. The year-over-year rent change is $60.44.
“Given further increases in the number of new additions to the inventory this quarter and over the last three 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,” Throupe said.
Absorption outpaced new units delivered for the first quarter of 2019, but there can be jumps in sub-market vacancies while new units are absorbed. The overall average rent for the last 10 years has increased from around $800 in 2002 to $1,480.74 this quarter. The absorption and new supply numbers will continue to be watched closely with significant new additions expected to the apartment stock over the next several 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. 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.