There is a new wave of multi-family residential developments hitting Denver, but the rise in inventory is not resulting in a drop in rental rates to make things more competitive. In fact, rental rates are going up and low vacancies are remaining in place, due to the high demand of people who wish to move to Denver. Every county in metro Denver (Adams, Araphaoe, Boulder/Broomfield, Denver, Douglas and Jefferson) saw its average rent climb, while the average vacancy rate fell from 5.2 percent to 5.1 percent in the fourth quarter. Here’s a breakdown of each county’s average monthly rent and vacancy rate for Q1, via data compiled by the Apartment Association of Metro Denver:
Adams: $988, 4.7 percent
Arapahoe: $1,026, 4.5 percent
Boulder/Broomfield: $1,228, 6.7 percent
Denver: $1,093, 6.8 percent
Douglas: $1,262, 3.7 percent
Jefferson: $1,033, 3.4 percent
Hopefully, once the projects that are under construction are completed, the saturation will help push down the rental rates throughout the metro. According to reports, there are more than 70 new apartments in Denver, some of which are under construction currently and some are coming soon. As for recently completed projects, there were 657 new apartment units built in Q1.