Recently, I decided to look at some rent trend figures to see how the Denver market is performing. It’s a popular time of year for leases to turn, so now is a good time to check out the data and see if rents should be raised. Using information from Apartment List, I was able to put together some graphs that show how Denver and the metro area are performing.
This analysis was featured on a live episode of Drinks and Deep Dives. You can find the podcast for this blog post within the episode #296: Analyzing Denver Area Rent Trends and Fourplexes in Loveland.
Tune in Wednesdays at noon MT to join me live for the next Drinks and Deep Dives show.
- Listen to the podcast “#296: DDD: Analyzing Denver Area Rent Trends and Fourplexes in Loveland” on the Denver Real Estate Investing Podcast
- Watch the YouTube video (at the bottom).
- Read the blog post. Note, the blog is an executive summary. Get the in-depth breakdown from the podcast or video.
Denver Rent Growth Over Past 12 Months 2020-2021
There has been talk that the Denver market isn’t performing optimally and that the pause in evictions during Covid negatively impacted the market. However, looking at a year to year snapshot between June 2020 and June 2021, we can see that this isn’t true. Denver and the metro area are both steadily growing and are substantially rebounding from any effects covid had on the market.
Denver Rents Compared to Other US Cities June 2021
This chart shows Denver’s rent growth over the past year compared to all of Colorado and the US. Denver is rebounding substantially with 5.8% growth. We can see there’s a considerable amount of growth happening in Denver and Colorado after last year’s slowdown.
The next chart shows the current median rents for a two bedroom home across the country:
Denver is near the middle at $1700 a month, having seen a significant year over year upward trend. If you’re a landlord and your rent for a similar property is under $1700, you may want to see if it’s possible to get it up to that number based on the condition and location of the home.
While some of these cities have higher rent numbers, they also have higher vacancy rates to go along with them. Looking at Colorado Springs and Fort Collins, we can see that there are solid numbers and growth all along the Front Range, which is good news for our investors.
Denver Metro Area Rent Comparison
The above chart looks at rental trends for both Denver and the surrounding metro area. Again, we’re using the same two bedroom median rent. When you break this data down by neighborhoods, you can see the whole area has done well with growth, especially Littleton and Parker. Lone Tree is the highest at $2300, but it also has a higher price of entry.
Denver itself has seen the lowest growth, which isn’t surprising since the downtown area was hurt the worst during covid, which pulled the average down. Still, its 5.8% growth is promising, and if you have a unit in a different area of Denver, you didn’t necessarily see that low rent growth.
Denver Area Rent Month Over Month and Year Over Year
Finally, we can compare month over month and year over year for Denver and the metro area:
In the past month, we’ve seen about 3% rent growth; while it’s a little slower compared to the rest of the year, it’s still growth. We’re seeing big swings in year over year, even if this month is smaller comparatively. We always say to expect an average of 3% growth in rent, so this is very much in line with that estimate.
This data shows that while the area was indeed affected by Covid, it’s growing at a steady pace and bodes well for the future. Denver, the metro area, and the Front Range are all seeing growth, and landlords can use this information to help determine if their rents are in line with the market.