DENVER — Apartment rents in the Denver metropolitan area have hit an all-time high, according to a report released Monday by the Apartment Association of Metro Denver and the Colorado Division of Housing.
As the apartment vacancy rate has continued to decline, the area’s average rent increased to the highest level recorded in any quarter.
During the first quarter of 2013, the average rent in the metro Denver area rose to $992, increasing 4.2 percent, about $40, from 2012’s first quarter average rent of $952 .
According to the report, the apartment vacancy rate in the Denver metro area fell to 4.6 percent in the first quarter of 2013, dropping to the second-lowest vacancy rate recorded in any quarter since the first quarter of 2001 .
Ryan McMaken, an economist with the Colorado Division of Housing, said the number of new apartments delivered has increased rapidly since 2010. But he said the numbers haven’t been large enough “so far to push vacancy rate up significantly.
“We do see some submarkets where vacancies are temporarily up as new communities lease up, but that’s not indicative of a decline in demand,” McMaken said.
“There may be pockets or sub markets where new supply is challenging, but not at the overall market level. It is a time going forward where the attention to sub-market supply and demand will dominate,” said Ron Throupe of the University of Denver, the report’s author.