It may not seem like it when shopping around for rentals, but Denver has fallen off the list of most expensive U.S. cities for renters looking for apartments. According to a national list compiled by Zumper, Denver fell three spots to the #24 ranking. That’s even below smaller cities like Madison, Wisconsin! So what’s going on with the drop in rental rates?
The Drop In Rental Rates
When focusing on one bedroom apartment rates, Denver dropped about 3.2% from the previous month, coming up with a median rent of $1,220.00 per month. Part of this is caused by the overabundance of choices for apartments in Denver. With all of the new construction this year and more planned for 2017, this doesn’t come as too much of a surprise. More supply equal less demand. Another part is seasonality. Not many people are looking to move in the cold and the snow or in the middle of the holidays.
But it’s not just apartments where Denver is seeing the drop in rental rates. Working closely with RentRange, the nation’s leading provider of Rental Market Intelligence, Real Property Management Colorado also reported a drop in single-family home prices during the 3rd Quarter of 2016, focusing specifically on 3 bedroom homes. The average monthly rent for a 3-bedroom home in the Denver area was $2,028, which is only a slight decline from Quarter 2’s average of $2,096.
But Denver Is Still On Top!
Though prices may be dropping, Denver still remains one of the top markets in the U.S. Taking a look at year-over-year rates, rents still increased statewide by 3.3%. Not to mention demand is still high, be it for apartments, condos, townhomes, or single-family homes. Vacancy rates also dropped to 2.68% during the 3rd Quarter, down from 2.83% a year ago.