The Denver Rental Market Could Become Friendlier

The Denver rental market is showing signs of shifting, according to the latest data from the Apartment Association of Metro Denver. While the average rent has increased by just half a percent in the third quarter, it is up by 1% from the same time last year.

This news comes as the association has reported a total of 411,079 apartments in the Denver metro area as of September, a sign of a healthy and growing rental market.

But despite the slight rent increases, the report also reveals that the number of vacant apartments has remained flat.

Average rents of $1,888 are up a half of a percent for the quarter and up 1% from a year ago. The median rent in Denver is $1,810. The change in the number of vacant apartments was also flat and that’s pointing to a cooling off for rent increases.

This could be a sign that the market is reaching its peak and starting to cool off. Cary Bruteig, a researcher with Apartment Insights, noted in a news release that the increase in the number of vacant apartments could bring about a decrease or stagnation in rental rates.

While some may view this as a negative trend, there may be a silver lining for renters.

According to the report, there are currently 120,000 more apartment units either under construction or in the pipeline. This could potentially lead to an increase in the supply of available units, which could help ease the pressure on rental rates.

Bruteig predicts that if vacancy rates continue to rise, as is likely with the large number of units in the pipeline, rental rates may either remain flat or begin to decrease. This could be good news for renters who have struggled with the high cost of living in Denver.

So, what does this mean for the overall health of the Denver rental market?

The slight increase in rent combined with the flat vacancy rate could be seen as a sign of stability. However, the influx of new construction may shake up the market in the coming months.

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It will be important to keep a close eye on vacancy rates and rental prices to see how these changes impact both renters and landlords.

With a large number of units in the pipeline, renters may soon see some relief from the high cost of living in Denver. As always, it will be important to monitor the market and adapt accordingly.