If you’re wondering if apartment rents in Denver have skyrocketed as much as you think, wonder no more: In the past ten years, apartment rents in the metro area increased a whopping 46.9%, according to a new study.
The findings from the real estate research firm RealPage, as reported in the Denver Post, show that Denver logged the fourth highest increase in the nation from 2010 to 2017, just below San Jose (where rents rose 51.3%), Oakland (51%), and San Francisco (48.6%).
On the bright side, Denver started at a much lower base than those northern California cities, meaning that its rents are still substantially lower than the other cities. Denver’s “effective rent,” notes the Post, is $1,401, compared to average cost of $2,259 in Oakland and $3,288 in San Francisco.
Additionally, more supply should soon reach the Denver market. At that time, experts predict discounts and other concessions will be offered, first in the newest high-end properties and moving to lower-priced buildings.
“Over time, that competitive easing environment at the top of the product spectrum usually trickles down to the middle-market and lower-tier properties as well,” notes RealPage chief economist Greg Willett.
Nonetheless, RealPage predicts that metro area apartment rents will continue to increase 3% per year over the next five years.
While the rate of increase is slowing (rents rose 7.6% per year in the first half of the previous ten years; 3.4% per year in the second half), it’s still enough to make renters consider the benefits of buying a home, where they could build equity and shield themselves from rising housing costs in the future.