Has Denver Multifamily Rent Growth Peaked?
As a growing market, metro Denver's apartment rents have been growing as well—famously so, along with markets such as Seattle and San Francisco. But the rate of growth might have reached a peak, according to Axiometrics.
“Rent growth won’t return to where it was a year ago and will likely stay in the vicinity of the national rate,” Axiometrics VP of research Stephanie McCleskey tells us.
The company reports average Denver-area apartment rents in June passed $1,400/month for the first time, up 3.5% from a year ago. In May, the growth was 4.5% on an annual basis, and in June 2015, it was 11.6%.
That's because market fundamentals, while still strong, are aligning to keep a lid on extreme rent growth. “Job growth in Denver remains strong, but a lot of new units are scheduled for delivery in the second half of the year,” Stephanie says.
That's being reflected in metro apartment occupancy, notes Axiometrics: 95% in June, about the same as in May, but down from 95.9% in June 2015.