With 2018 in full swing, it’s time to take a look how the first half of Quarter One has gone! Denver rents in January held steady, growing only about 2% from the year before. Now with February come and gone, it looks like that same trend has continued, with rents remaining unchanged for the second month of the year.
Overview of Denver Rents
According to ApartmentList, the median rent for a one-bedroom apartment held steady at $1040 in February, which is only a $10 increase from January. Denver rents for a 2-bedroom apartment in both January and February came in at $1310 per month.
Overall, Denver rents only increased about 2.1% as a whole since February of last year for apartments across the metro area. This is also slightly below the national average, which came in at 2.6% year-over-year.
But that’s not to say that all Colorado cities are in the same boat. Fort Collins in northern Colorado, for example, saw a year-over-year increase of 3% for their apartments, while our southern neighbor, Colorado Springs saw rents rise 4.5% since February 2017.
Across the Denver Metro area, rents for apartments vary. Here’s a list of where the average rent for a 2-bedroom apartment for the biggest cities across the Denver Metro area landed at in February:
Castle Rock: $1,720
Lone Tree: $1,930
As you can see, Lone Tree came in on top in February just like it did in January.
So What Does This Mean for Condo Owners in Denver?
First, you have to look through the lens of a renter. Renters will compare condos and apartments side by side, as there’s little different between the two in their eyes. Second, as a condo owner, apartments are your #1 competitor, and with all of the brand new complexes popping up left and right with all the new bells and whistles, you have to be extra competitive when it comes to pricing your rental. Be aggressive and realistic with your price. Just because the apartment in the brand new apartment complex across the street is asking $1700 a month, doesn’t mean you can, too.
It all comes down to a comparison of three key things: amenities, location, and price. You only have control over one. If no one is interested in your unit after a week on the market, reduce your price. Failure to do so could ultimately cause your property ad to begin to stagnate and your unit continue to sit vacant.