Property management companies in Denver revealed that the average rent for apartment rentals has increased. According to the Apartment Association of Metro Denver, the average rate is set at $1,291.85 per month This is 12.8% greater than the average rate for the third quarter of 2014. The increase in rent is due to the recently released units. Developers increased the housing supply in Denver by 2,022 apartment units for the past three months and 19,400 apartment units for the past three years. The 19,400 new units were included for computation.
For several year now, the increased demand for housing in Denver have prompted developers to construct more apartments. The cost for building new housing units have increased says Jeff Hawks, Vice President of ARA North America. Hawks said that in 2001 a developer would spend about $100,000 for every apartment unit but today to build exactly the same unit a developer would have to spend $250,000.
On the other hand, the vacancy rate has increased to 5% for the third quarter from 4.5% for the second quarter of 2015. Mark Williams, the Executive Vice President of the Apartment Association of Metro Denver explained that vacancy rate is understandable because of the new units available.