Apartment rents in the Denver metro area surged 4.5 percent year-over-year in the first quarter of 2012, the largest increase posted in any quarter for a decade.
The figures come from the Apartment Association of Metro Denver and the Colorado Division of Housing, which report average rents jumped from $911 to $952. The last time rents grew by more than 4.5 percent was in the third quarter of 2001, the organizations report, when an even larger 8.7 percent spike was recorded.
Real estate professor Ron Throupe commented that this increase was particularly notable because the first quarter is typically marked by moderation, the Denver Post reports. In the report, he noted that demand continues to outpace new multifamily construction. Vacancies fell from 5.5 to 4.9 percent year-over-year, the second-lowest rate on record since 2001. The Colorado Division of Housing indicated that a few areas have higher vacancy rates, but most are consistent.
Similarly, rental property management companies and owners in all counties measured should be benefitting from rent growth. While some surged more than others, average rent prices were up in every area in the report.