Rent hikes in tech towns like Denver won’t last, says Apartment List
For almost the past six years, rents in technological hubs like San Francisco, Austin and Denver have risen 1.6 percent faster than the rest of the country, according to Apartment List’s data.
But the tide’s about to turn, the firm says, because apartment supply is expected to peak in 2017. In fact, Apartment List predicts growths in rent will slow through 2021 in cities like Denver.
Part of the reason is that housing supply is catching up to demand. Denver in particular is among the cities with an increasing supply of rental units, according to the firm. Census data on November housing construction seems to back them up: New units in apartment buildings, those with five or more units in the building, have risen 52 percent compared to last year.
Plus, growth in the tech sector isn’t as strong anymore either, says the firm. The Denver technology and startup scene is free to take that as a challenge as long as they don’t end up hiking my rents as a result of their success.