The Apartment Association of Metro Denver along
with professors from the University of Denver recently released a report
indicating what many renters and potential renters already know: rents in the
Mile High City are on the rise. In addition to the authors of the report, other
sponsors included the Colorado Housing and Finance Authority, the Colorado
Division of Housing and Pierce-Eislen.
According to the report, rent discounts and
concessions averaged 9.3 percent in the second quarter of 2014, which is up
from 6.9 percent for the first quarter.
The Executive Vice President of the AAMD,
Mark Williams, said that concessions are typically higher in the summer months.
New vacancies appearing online contribute to increased concessions because new
properties are looking for deals to attract new residents. These concessions
increase what’s known as the “economic vacancy” rate, which combines physical
vacancy plus concessions and discounts, from 12 percent in the previous quarter
to 14 percent.
The report also indicated that average
rental rates for the second quarter were $1,117, which is up from $1,074 the previous
quarter. However, when adjusted for inflation, rents have been basically flat
over this period.
The overall metro-area vacancy rate was 4.7
percent, up from 4.2 percent in the second quarter in 2013.
The report included a comprehensive survey,
administered by professors at the University of Denver, which stated that in
the second quarter in 2014 the region added 1,261 new apartment units, bringing
the total metro-area inventory to 298,461 units.
These numbers indicate a strong apartment market
in the Denver metro area, which is a draw for the younger crowd heading to the
Mile High City. However, climbing rent prices may also be a motivator for
long-time renters to strongly consider becoming first-time homeowners.
Author:Ken Blevins Phone: 720-255-7242 Dated: August 1st 2014 Views: 1,464 About Ken: Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and...
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