With the unprecedented growth in the Denver metro area over the past couple years, it was only a matter of time before home prices in the Mile High City jumped over the $500,000 mark. According to
Rents On The Rise In Metro Denver
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.
Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....
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