DENVER -- Rental prices continue to climb for apartment residents, and according to a study, Denver-area residents will see the highest increase in the country this year.
The study by commercial property tracker Reis Inc. shows Denver renters will pay a projected monthly rent of $1,335 a month, an average increase of 9 percent from last year.
The projected average amount in Denver ranks 10th among the top 20 U.S. markets; average rent in San Francisco is expected to be $3,040 a month this year.
Rents in Denver have increased more than 5 percent a year every year since 2010. In 2014, the spike was 9.2 percent, according to Marcus & Millichap, a commercial real estate services firm.
With big job growth in the metro area and not enough apartments, rents will continue to rise, experts said. In January, Trulia said Denver's 14.2 percent rental increase in January was the highest in the country.
The average U.S. rent has spiked 14 percent since 2010 to $1,124 a month, the study said, an increase that is 4 percentage points faster than inflation and more than double the rise in U.S. home prices.
“The only relief in sight is rents in the hottest markets are going to go up at a slower pace, but they’re still going to go up,” Hessam Nadji, chief strategy officer at Marcus & Millichap, told The Associated Press.
|Top 20 U.S. Markets||Projected monthly effective rent for 2015||Year-over-year percent change|
|San Jose, Calif.||$2,486||8.5|
|Counties of Riverside and San Bernardino, Calif.||$1,231||5.6|
|Orange County, Calif.||$1,813||5.3|
|Fort Lauderdale, Fla.||$1,384||4.9|
Source: Marcus & Millichap Research Services, MPF Research