Denver rental prices continue to rise. Home prices are up, mortgage rates are up, and rent in Denver and nationwide. Denver is ranked as the 15th most expensive rental market in the United States.
Average annual apartment rents in metro Denver rose 14.4% year-over-year in the first quarter solidly ahead of the 9.1% gain in overall consumer inflation measured in March, according to a survey from the University of Denver and the Apartment Association of Metro Denver. Average apartment rents are now at $1,765 a month, and higher in the more popular neighborhoods.
Across the United States, the rental market has been hitting all-time highs — though national growth has been slower than Denver’s. Nationally, one-bedroom median rent is up 12.8% at $1,414, and two-bedroom rent is up 13.9% at $1,758.
Why The Rise
The short answer is inflation. With supply chain issues everywhere, and costs for all consumables rising, consumers are unwilling or unable to spend money on purchasing a house, therefore rental inventory is at an all-time low.
Another reason is the popularity Denver has gained as a “high-turnover” metro area- like San Francisco, Austin, and Nashville. Meaning these cities receive a high volume of inbound as well as outbound apartment searches for people coming and going, as a way to try out a popular city to live in.
Higher rents are pushing current residents to look at more affordable options outside of the Denver metro area, but the area remains popular with newcomers, who on average have a budget that is 8% higher than that of current residents.
The Good News
There are many reasons why renting a property is a preferred choice.
- You have more privacy than what an apartment offers
- You don’t have the maintenance cost of ownership.
- You’re not paying property insurance or property taxes on a yearly basis.
- You have the flexibility to leave at the end of your lease.
If you are interested in living in the Denver area but do not want to buy a home, contact Walters and Company Property Management. We offer top-notch rental properties in highly coveted areas and we’re always happy to talk more about our rental properties, our application requirements, and our leasing process.