We recently received this report on Denver rental market trends from Apartment List. They provided us with some great data investors can use to better understand the market and price their properties. Check it out:
How Hot Is the Denver Rental Market?
Across most of the country rent prices have been surging for over a year, and the Denver rental market is no exception. In just the past 12 months, prices for Denver apartments have increased 16.5%. The median rent now stands at $1,468 for a one-bedroom apartment and $1,798 for a two-bedroom. Price growth has slowed considerably in the past three months, but this has done little to improve affordability in a city that has become increasingly expensive. Rent growth in 2021 has completely wiped away any market softness introduced by the pandemic in 2020.
Looking at the Metro Area
The suburban regions surrounding Denver have been equally hot since the start of the pandemic, when they began absorbing a lot of new demand from Denver and other larger, more-expensive cities. For the last year, low vacancy rates have buoyed high rent prices that in many cases exceed Denver proper. Double-digit annual rent growth has been measured in nearly every Denver suburb in our database, including Aurora (+16.5%), Thornton (+14.0%), and Arvada (+13.0%).
Where Are People Moving From?
Despite the tumult of the pandemic, metro Denver maintains a strong job market and offers stellar urban amenities that continue attracting new renters from across the country. Apartment List migration data identifies where renters searching for apartments in Denver are coming from. 42% of all searches originate outside Denver metro, and the greatest shares are coming from Dallas, Atlanta, and New York.
Find Out More
To see more data from Apartment List, check out their website.
If you have questions on how this data affects your portfolio, or you want to find an investment property of your own, reach out to us. We’d be happy to look at your portfolio, or find the right property to fit your goals.