Denver Rents Start 2017 By Moving Higher
Metro Denver apartment rents rose in January, snapping a five-month streak of month-over-month declines, according to a new report from Axiometrics, a Dallas-based multi-family housing research firm.
The increase wasn’t huge, just $6 a month, bringing the average effective rent, which includes discounts, to $1,365 a month in metro Denver. Rents rose at a 2.7-percent annual pace in January, an increase from December’s 2.3-percent pace. Nationally, apartment rents rose 2.2 percent last month.
The apartment occupancy rate in metro Denver remained unchanged at 94 percent, the same level seen in December, but down from the 94.3 percent of January 2016, according to Axiometrics.
Stephanie McCleskey, vice president of data acquisition for the firm, said in the monthly report that employment gains continued to run strong in metro Denver last year at 44,800, allowing the market to absorb new apartments. Apartment construction is expected to ramp up this year, adding to the pressure landlords will face to win over tenants.
“Rent growth will continue to moderate throughout the year as owners and managers compete to fill new units,” she said.
A separate report from RealPage, which recently acquired Axiometrics, estimates downtown Denver will see an 8 percent surge in new apartments hitting the market in the fourth quarter, marking the high water mark of the current multi-family housing boom.
The rest of metro Denver will see its apartment construction peak come in the first quarter of 2018, with an increase at just under 4 percent.
Out of metro Denver’s 22 largest apartment submarkets, the fastest rent gains occurred in north Aurora, at 6.3 percent. Denver County rent gains averaged 5.3 percent, while Arapahoe County averaged 4.8 percent and south Aurora, 4.8 percent.
Average rents and the sheer number of apartments reflect a move away from home ownership, numbers show.
Across metro Denver, 61.6 percent of residents owned their homes in 2016, a rate that matched 2015. Denver ranked 47th among the top 75 metro areas for its rate of homeownership.
In 2006, about 70 percent of metro Denver residents owned their home.
My name is Olga Telesin and I am a Colorado Realtor helping buyers and sellers around the Denver Metro areas of Colorado, including Denver, Aurora, Parker, Centennial, Highlands Ranch, Castle Rock and....