Things are a changing here in the metro Denver area. Supply is not keeping up with demand and we are seeing decreased vacancy and increased rents all around. The percentage of rental apartments available in metro Denver is at its lowest point in 12 years according to the Dennis Huspeni of the Denver Business Journal. The vacancy rate for metro Denver apartments stood at 4.3 percent in the third quarter, the lowest vacancy rate recorded since the same quarter in 2000, according to a report by the Colorado Division of Housing. This is very significant for both landlords and tenants.
Vacancy is low which is precipitating the trend towards increased rents. “Rents climbed to an average of $986, up 5.2 percent year over year and the biggest rent gain average came in Boulder/Broomfield, which climbed 8.1 percent in one year.” noted Mr. Huspeni. “The average rent has grown year over year in every quarter for the past two and a half years, and it has recently begun to accelerate,” Ryan McMaken, Division of Housing spokesman, said in a statement. “The rent growth we’re now seeing is starting to look like what we experienced in the days of the dot-com boom.” Because of the consistent trajectory it looks like this is more than a mere trend.
Based on a report by Inside Real Estate News, rents clearly rose as property owners responded to falling vacancy rates across the metro area. The average rents by counties were:
- Adams, $906.
- Arapahoe, $956.
- Boulder/Broomfield, $1,091.
- Denver, $1,005.
- Douglas, $1,131.
- Jefferson, $919.
There is a basic supply and demand scenario playing out in metro Denver. Vacancy is lower and rents are on the rise. For landlords this is great news! It will be interesting to see how 2013 plays out.