Denver Adding 10% To Apartment Inventory
Despite the number of apartment projects under construction in metro Denver, rents are still rising, albeit a bit more slowly than in years past. Still, there are some enclaves that are more affordable than others.
The 20,000 apartment units under construction in metro Denver represent a 10% increase in the region’s inventory, CoStar market analyst David Pierce said.
“That’s one of the top five highest amount of construction we’re seeing in the country, in terms of percentage,” Pierce said. “Rents have grown by 1% a year in downtown for the last two years. For the higher-end stuff, rent growth is barely positive.”
Downtown Denver has the most expensive new development in the metro area, with rents averaging $1,850 a month for a one-bedroom apartment. But because there are so many new buildings to choose from — and 6,000 more units under construction — it is also the neighborhood that offers the most concessions, Pierce said.
“There have been at least 10 properties in the lease-up stage since the end of 2013,” Pierce said. “It’s not a leasing environment that’s conducive to asking someone for a 5% rent hike. If you’re looking for a deal — maybe a month or two free rent — you can find that.”
The average rent for a one-bedroom unit in Aurora, where there are 6,000 units under construction, is $1,400 a month, and in northwest Adams County, they are $1,300. But rents are on the rise for these neighborhoods, too.
“They saw rents grow a little over 4% from 2016 to 2017,” Pierce said.