DENVER (KDVR) — Renters could see a little bit of relief in the coming months.
A new report from the Apartment Association of Metro Denver shows the median rent for an apartment is down $27 compared to last quarter. It’s the biggest single-quarter drop in more than 40 years.
Rates are still up $92 compared to the same quarter in 2021, but analysts say prices are trending in the right direction.
“It doesn’t sound like much on the surface,” said Mark Williams, with the Apartment Association of Metro Denver. “But when you put that kind of perspective on it, it’s the largest one-quarter drop in a 41-year history since we’ve been tracking the data.”
As Denver rents lower, vacancies rise
Another thing to help with rent costs is the rising vacancy rates. Rental vacancies are up to 5.6%. That’s nearly 1% higher than last quarter.
According to the report, there are 40,000 new units being built. Nearly a third of those are expected to be available this year.
“When I see the huge pipeline of apartments being built and the demand for apartments and absorption of apartments waning a little bit, it looks like the rental markets are going to continue to soften,” Cary Bruteig with Apartment Insights said. “How big those rent decreases will be in the future, I don’t know, but I think renters ought to be pleased with the direction it appears to have shifted.”