Front Range Market Update: First Quarter 2015

The statistics are in for the first quarter of 2015 from the Apartment Association of Metro Denver, and the rental market has continued to surge as predicted.

Average Rent

Average rents rose 12% from $1,073 in Q1-2014 to $1,204 in Q1-2015.  The median rent increased by 13% from $1,021 in Q1-2014 to $1,158 in Q1-2015.   The median rent is a better indicator than average rent because a high end property will skew the average statistics. There was a 3% increase in rents from Q4-2014 to Q1-2015. Denver is listed in Realty Trac as one of the hot Midwest markets with a 20% uptick in rents according to their index. Rent Trac uses one bedroom rentals as their gauge and has San Francisco as the highest one bedroom average in the United States with $2,100 per month. Denver is pretty high on their list with an average one bedroom at $1,039.

Vacancy Rates

Denver metro vacancy rates have dropped from 5.1% in Q1-2014 to 4.9% in Q1-2015. A balanced vacancy rate is considered to be 5%. Denver has continued to deliver thousands of apartment units over the past 12 months and this healthy vacancy rate shows that the market has been able to absorb this added inventory. The vacancy rate did rise slightly from 4.7% in Q4-2014 to its current rate at 4.9%, but this was expected with the introduction of new units to the market. The newer Class A units have also played a factor in the rise of the average rents in Denver. Apartment buildings under renovation are also contributing to the slight rise vacancy rates while they are under construction.   The renovated apartment buildings are removing the low end rental units from the rental pool and delivering fixed up apartments at the top of the market, further increasing the average and median rents. This trend is not expected to slow down for 2015.

Outlook

Our company has experienced a strong spring market with increases in rents across the board from Fort Collins to Castle Rock.   Properties rented quickly that were priced properly, while landlords who tested the market with above average rents found that residents were not willing to pay the premium. This is a strong indicator to us that the market is at a very balanced point right now making it even more important to use an expert to price your rental competitively.   We are the experts and here to help. Please call us if you have any questions about leasing or property management.

Speak Your Mind

*

* Copy This Password *

* Type Or Paste Password Here *

1,537 Spam Comments Blocked so far by Spam Free Wordpress