In 2020, rent prices in Denver fell. The reason for this was because of the COVID-19 pandemic. Many renters chose to purchase a home or move out of the city into a less crowded area for safety. However, in 2021, this has changed. Rent prices in Denver have been increasing steadily for the last few months, and in 2021, the rent prices showed a 16.5% increase during the year.
With such a steady increase, will rent prices ever go down again?
When will rent go down in Denver
All rent prices have a pattern. In Denver, rent prices tend to skyrocket in the summer months when moving is easy. In the winter months, when moving is more complicated, the prices drop. However, rent prices have been steadily increasing for the last couple of months in the Denver, Colorado area.
In December 2021, the median price for a one-bedroom apartment was around $1500. That number was lower than November, and if this trend continues, January 2022 until April 2022 should see lower prices than the summer months. The prices may fall again in November when the weather turns colder.
It is hard to predict any long-term and lasting changes for the rental market, but because there has been a higher demand for rentals, the price will continue to go up. For 2022, economists predict a 7% growth in national rental prices in the next year. This also comes with a more competitive rental landscape. As rental prices climb, renting becomes less affordable than homebuying, and landlords have to face limited options for recouping lost money during the pandemic.
If you are interested in living in the Denver area but do not want to buy a home, you may be considering renting a place. Rental prices have been going up for the last year and there forecasted to continue to rise. However, if you are looking for a well-priced rental, consider looking in the colder months when rent prices drop.