The numbers bear it out. People really do want to live in Denver over other places in the country. Nothing shows this more clearly than the increased demand for rental units, the large uptick in rental charges, and the plunging apartment vacancy rate in the Denver area.
A report from the Apartment Association of Metro Denver and the Colorado Division of Housing says the average rent for a metro Denver apartment had a 4.5 percent year-over-year increase from Q1 2011 to Q1 2012, the largest jump for any quarter since 2002. In dollars, this equates to average rents growing from $911 per month to about $952 per month.
The last time average rents increased this substantially year-over-year was 2001’s Q3 increase of 8.7 percent.
Demand for Denver living space is growing faster than rental units can be produced, driving rental prices up in almost all counties studied. The largest average rent increases were in Denver County with a year-over-year increase of 6.3 percent and in the Boulder/Broomfield area which grew by 6.7 percent.
Highest average dollar rents were found in Douglas County at $1,109 per month and in Boulder/Broomfield County with $1,070 monthly. The lowest average rent was $897 in Jefferson County.
Using the apartment vacancy rate as a metric also tells a story of short supply and high demand. In Q1 2012, the Denver metro apartment vacancy rate dropped to 4.9 percent, the second-lowest since 2001. By comparison, the 2011 Q1 rate was 5.5 percent. Vacancies in the more desirable neighborhoods average a low three to four percent.
So if you’re considering a move to Denver, these numbers say you should act fast because our area is becoming more popular every day. And the reason is clear: it’s a great place to call home! And if there is any possible way, consider buying a Denver home instead of renting. You will have the advantages of tax deductions, no annual increases in housing costs, and a place you can truly call your home. If you’re an investor, Denver is a great place to buy rental properties.
Let the professionals at the Bandy Team help you buy or sell a Denver home. Contact us for a no-obligation consultation. If you’re thinking about buying a home in Castle Rock, we can show you some terrific properties in Castle Pines, homes in The Meadows, town homes in Founders Village, and real estate in Castlewood Ranch.