The Apartment Association of Metro Denver released their first quarter apartment vacancy report last week and here are some stats for us—
· The vacancy rate remained at 4.3% in the first quarter matching the 4th quarter. The vacancy rate a year ago was 5.5%.
· Average apartment rent last quarter was $1765, an increase of 3.3% or $57 from the 4th quarter.
· Average apartment rent is up 14.4% or $222 year over year.
· Developers delivered 1,936 in the first quarter, down over 60% from the 4th quarter when they finished and delivered 6,282 new apartments.
· Renters absorbed 2,393 new apartments in the first quarter.
Ron Throupe who helps write the report said there are concerns about developers over-building but, “this phenomena has yet to occur as migration, job growth, and limited homes for sale, has supported apartment demand.”
Finally, every government official in our state needs to read and absorb these words from Drew Hamrick, SVP for government affairs and generat counsel for the apartment association, “The key to housing affordability is housing supply.”
Until local, state, and national government officials realize this and act on it with policy changes our housing supply crisis will NOT GET ANY BETTER.