Between 2010 and 2018, Denver rents exceeded the national average according to data provided by RealPage Inc. In 2010, Denver’s average rent for apartments landed at about $800 per month. This was 17% below the national average according to RealPage Inc’s data. But at the end of 2018, that average jumped up to $1462 and pulled ahead 8% above the national average!
How Do Denver Rents Compare?
The 8-year time-frame is a testament to how popular Denver has become. During that time span, Denver pulled ahead towards the top of the list of the nation’s top 50 apartment markets. According to RealPage Inc., “Denver ranked #17 for monthly rental rates at year-end 2018, positioning the market behind the typically expensive markets in the Northeast and California.” To put it into perspective, rents in Denver increased 20 percentage points higher than the national average. This is huge!
What Areas Saw the Most Growth?
Not all of Denver’s submarkets saw as high growth as others. Between 2010 and 2018, suburbs like Lakewood, Aurora, Wheat Ridge, Thornton and Northglenn saw the highest growth. Rents in those areas increased around 60% during the 8-year cycle. By comparison, Denver’s more expensive areas, such as Downtown, the Highlands, Highlands Ranch, etc., saw smaller price increases during that time.
Denver Tops in Two Growth Categories
Denver ranked high in rent growth and in another category as well: supply growth. Among the nation, Denver came in at #4 for supply growth. And it doesn’t look like it’s slowing down, either! Denver’s apartment construction is set to add another 52,000 units, with about half under construction now and the other half in the planning stage.
As we move further into 2019, it will be interesting to see if these trends continue into the next 8-year cycle. Only time will tell!