Some Much Needed Relief for Denver Renters

Some Much Needed Relief for Denver Renters

Some good news for Denver renters — the rental market appears to be cooling down a little bit! As we head into our peak rental season expect rental rates to remain close to the same or increase ever so slightly. The exception to this will be sought after, hot neighborhoods where people are willing to pay a premium for a high walk score.

Denver, Colorado Rental Rates Q1 2018

Denver two year look back for median rental rates.

The first quarter started out relatively flat compared to the sharp increase seen at the beginning of 2017. New apartments have steadily been hitting the Denver market, helping to slow the rent increases we’ve been accustomed to. As we get into prime leasing season (May – August) we would expect to see a very slight increase for three and four bedroom units, since new units of this size aren’t being built as frequently as their smaller counterparts. One and two bedroom rent will likely remain flat and could even show a small drop due to the new inventory hitting the market each month.

Denver Median Rental Rates by Bedroom Q1 2018

Median Denver Metro Area Rents ($)

As we look at median rental rates around the metro area, one neighborhood that sticks out is Union Station (LoDo). Why? The 1 year change was -0.9%, mainly due to the increased competition from new rental units hitting the market. The 5-year change was only 1.7% — proof that added density and inventory is what Denver needs to curb rising rents.

View map in larger screen here.

Note: Think of this map as a 30,000 feet view of the rental prices in Denver. You can click on each neighborhood for exact numbers and year-over-year statistics.

Median Denver Metro Area Rents (per square foot)

The most expensive neighborhoods based on price per square foot are pretty consistent with home sales. Denver’s popular/hot neighborhoods are expensive to live in. Competition is fierce and residents can expect to pay a premium to land an address in one of these neighborhoods. Check out City Park West’s stats. Great neighborhood and the average rent per square foot is only a buck 70!

View map in larger screen here.

Note: Rent per square foot is the best indicator for apartment and attached condos/loft comparison. When using this chart, know that rent PSF is a monthly figure and will give you a good starting point on how far your budget will go. So, for example, if you’re budgeting $1,500 per month for rent and you want to live in LoDo, you can expect to lease approximately 717 square feet ($1500/$2.09). 

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