The Apartment Association of Metro Denver and DU released their first quarter apartment vacancy report. And demand for apartments is incredibly strong!
- Builders delivered 3,959 new apartment units in the first quarter and tenants absorbed an amazing 5,552 new units!!!
- This strong demand caused the vacancy rate to drop to 5.4% from 5.8% at the end of 2018.
- Average rent hit $1480, which is 1.6% higher from a quarter earlier and is 4.1% higher from a year ago.
Last year renters absorbed 1,400 more new apartments than were built last year as renters leased apartments built in 2017. This trend strengthened in the first quarter as renters absorbed 1,600 more new apartments than were built in just 1 quarter!!!
This is incredible to see! This is a visible sign that more people are moving here. Second, it’s a sign of how strong our economy is. Third, it tells me that wages are rising fast enough that people want to rent and can afford to rent high-end luxury apartments.