Rent & Vacancy Results Reflect Healthy Market
Central Denver Apartment Market Report: Cover page of our 2019 Q2 newsletter
Encouraging news was published in late July within the Apartment Association of Metro Denver’s 2nd Quarter Vacancy & Rent Report. Typical of the spring season, rents increased and vacancy rates fell since the winter months. Metro-wide, apartment vacancy fell to 5.0%, a decline from 5.4% in the 1st quarter, and a remarkable decrease from 6.0% a year ago. The median rent for all apartments metro-wide increased to $1,520, up from $1,484 a year ago. That 2.4% increase, however, is the lowest growth rate since 2011.
Because vacancy and rent statistics are skewed by larger, newly constructed properties, it is more relevant for our clients to focus on the specific Central Denver figures reported. Drilling down to the figures reported for buildings with less than 50 units (essentially removing the new construction) provides a clearer picture of how older buildings in Central Denver are performing.
Vacancy for Central Denver buildings between 9-50 units was only 4.3% in the 2nd quarter, demonstrating strength in the face of continued construction of newer properties. Rents for these smaller buildings continues to remain healthy, with studio apartments now averaging $999/month in Central Denver. Average rent for one bedroom apartments was reported as $1,148, and $1,482 for two-bedroom units. For those of us who remember where rents were just a few years ago, it is remarkable that an average Capitol Hill studio apartment rents for nearly $1,000/month!
by Greg Johnson
Calibrate Real Estate
900 East Louisiana Avenue #203, Denver, CO 80210