The overall Denver-area apartment vacancy rate in the third quarter fell to a 14-year low of 3.9 percent, while average monthly rental rates once again set a record high, shows a report released on Friday.
“Every quarter we set a new high,” said Ron Ron Throupe, the co-author of the report at an associate professor at the University of Daniels College of Business.
However, today’s rents are the highest, even when adjusted for inflation.
“I believe they are,” Throupe said. “For many years that was not the case. The long-term trend was that rates were rising, but maybe just keeping up with inflation, or even slightly below inflation. They were basically flat. Now, rents are higher in real dollars, I believe.”
The average rent was $1,145.49, 9.2 percent higher than the average rent of $1,048.63 in the third quarter of 2013, according to the report by the Apartment Association of Metro Denver.
The median, or middle, rent was $1,109.32 in the third quarter, 12.3 percent higher than $987.63 in the third quarter of 2013 and 3.9 percent higher than the $1,067.87 in the second quarter.
Rents for recently constructed units are much higher.
The average rental rate for an apartment unit constructed between 2005 and 2012 is $1,468.71.
Meanwhile, the overall vacancy rate of 3.9 percent was the lowest since the rate was 3.7 percent in the third quarter of 2000, according to economist Patty Silverstein.