All that construction that Denver has put up with seems to finally be yielding results.
For the second quarter in a row, the average cost of renting an apartment decreased, according to the Denver Metro Area Apartment Vacancy and Rent Report. On top of that, it’s the biggest dollar decrease in the 36-year history of the survey.On the other hand, that biggest ever decrease is just $21 from the fall to the end of 2016. And on a percentage basis, that’s a 1.5 percent decrease for the quarter, which has happened four other times. Plus, median rents remained flat at $1,329 per unit.
That’s still worth noting, says Mark Williams, executive vice president of the Apartment Association of Metro Denver.
“If you slice the data by just the units built since 2010, the impact is doubled, meaning that the average rent went down $42 per month for these newer units,” he said via email. “That’s $500 per year. So the impact is real for renters right now, especially if they’re new to the market and can commit to a longer lease term.”
The Apartment Association of Metro Denver says it’s thanks to the breakneck construction of new units. According to the survey, developers completed a total of 9,962 new apartment units in 2016.
“That’s the most apartments we’ve built during one year in Denver’s entire history,” said Teo Nicolais, a Harvard University instructor.
Bask it in, renters, because for this moment, we’ve got the cheaper housing option.