Denver rents increase slightly in March; long-term impacts of COVID-19 unknown

In Condo Trackerby Andrew DodsonLeave a Comment

The median rent of a two-bedroom apartment in Denver has increased for a fourth consecutive month and is us up nearly 1% from the past year.

Those are the latest numbers from ApartmentList.com, which tracks monthly rents across top cities in the U.S. The site’s April report show rents in Denver have increased 0.2% over the past month — pretty much flat — and are now up 0.9% year-over-year.

Denver’s median two-bedroom rent stands at roughly $1,359 today, which is $162 more than the national average of $1,197. The median one-bedroom rent in Colorado stands at $1,047.

It’s still too early to tell what the COVID-19 crisis will mean for rent growth. Social distancing efforts due to the virus have caused incredible unemployment, which will likely make it difficult for many tenants to cover rent. There is assistance that renters can apply for, but in the meantime, landlords are being advised to create payment plans for their tenants, waive all late fees through April 30 and refrain from evictions through the end of April.

Some landlords have pulled their listings until they can begin actively showing those units to prospective tenants.

Affordability

In addition to publishing monthly rent reports, ApartmentList also tracks renter satisfaction in many large cities, including Denver. The Mile High City scored a B+ overall for renter satisfaction, but was weighed down by one big factor: Affordability, where it received a “D” grade.

Denver has seen explosive growth over the past decade — and that’s expected to continue over the next several years. That growth has given multifamily developers plenty of confidence to build in the city, with a number of new high-rise rental buildings going up downtown and in surrounding neighborhoods.

What Denver lacks right now is more attainably-priced, for-sale housing options. The city is behind current demand for condos by 18,000 units. That tight supply naturally raises prices, making a downtown condo unattainable for many middle-class earners.

If you want to have a say in the future of Denver development, we invite you to participate in a focus group where we ask what you want to see in terms of housing development in the city. Learn more about that opportunity here.

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