2024 Rent Trends in Denver

Rents and Vacancy Stablize in 2024

Many experts thought rents would trend down this year, but the supply and demand economics stabilized rents and vacancies in Metro Denver. A recent article in the Denver Gazette states that rents stabilized for the first time in 44 years in Denver over an 18-month period, which is good news for renters. According to the Apartment Association of Metro Denver, the average Metro Denver rent went up $5 to $1,875. On the other hand, vacancy rates remain stable at 5.8 percent, which works in the favor of property owners and managers. 

The rate at which new housing units are being introduced into the market is nearly three times the usual rate. This surge in supply is a clear indication of the high demand for housing, as vacancy rates remain stable. However, it’s important to note that most of these new units cater to affluent tenants, leaving a gap in the market for affordable housing. This underscores the ongoing need for affordable housing in Denver.

Rents did not rise because of the influx of new units in the Denver market. Below are reasons why there is more supply in the Mile High City.

• Owners Are Moving from Short-Term to Long-Term Rentals – Denver regulations are making it more difficult for homeowners and investors to offer short-term rentals. So, short-term owners are moving to annual leases, which brings more supply into the Denver long-term rental market. Although financially beneficial, short-term rentals can cause excessive wear on a property and may be more costly in the long term than a good long-term tenancy.
• Cannot Sell Home – Some homeowners must move out of Denver because of a family death, a job transfer, or other life changes. Some with lower mortgages decide to rent rather than sell. Most had no intention of being home investors, but they are now, so they choose to put their rental investment under professional property management, adding to the rental supply.
• New Apartment Construction – Anyone driving around Denver over the last 18 months has noticed many erected cranes, most of which are multi-family construction projects. Denver can expect 46,000 multi-family units to become available this year, with another 75,000 in the pipeline. Some of these projects are near or in Denver’s most popular neighborhoods. Typically, these large complexes are rich with amenities. Some rent a three-bedroom apartment with heated underground parking, pool, and other comforts rather than a single-family home. Institutional investors with deep pockets financed many of these multi-family complexes, which gives them the luxury of offering steep rental and deposit concessions to attract tenants. Their actions put downward pressure on rents. Many of these complexes are located in the following neighborhoods.

Popular Rental Neighborhoods in Denver

South University Boulevard

The University neighborhood is located around Denver University and is on the other side of I-25, across from Washington Park. Renters here have access to cafes, restaurants, shopping, and quick access to the highway and light rail. The neighborhood has many students but also has families raising children.

• Half of the residents rent.
• The average rent for a studio or one-bedroom ranges from $1200 to $1500.
• Studio rents decreased by six percent in the first quarter, and one-bedroom rents decreased by thirteen percent.

Park Hill

Park Hill is near City Park, the Denver Zoo, and the Denver Museum of Nature & Science. It is desirable, with wide boulevards, grocery stores, and restaurants.

• Most people own in Park Hill.
• The average rent for a one-bedroom apartment is $1324, with two bedrooms costing $1800.
• Rents decrease 12 percent in Park Hill

LoDo and Confluence Park

The Confluence neighborhood stretches out towards the South Platte River and Union Station. Curtis Park, RiNo, and Five Points are all nearby, with a short walk to downtown Denver. Many residents do not need a car to commute.

• The average rent for a studio or one-bedroom ranges from $1500 to $2200, with two bedrooms costing $3200.

Washington Park and Cherry Creek North

Washington Park and nearby North Cherry Creek are highly desired neighborhoods with rising rents. Homes and apartments located along and around Wash Park are part of a quiet community next to one of the most beautiful parks in Denver, with quick access to Downtown and DTC.

• The median rent in Washington Park is about $1,975 and went up seven percent.
• Two-bedroom apartment rents went up 15 percent in Wash Park.

Golden Triangle to Gates Rubber Area

The Golden Triangle neighborhood got its name because it is smack in the middle of Capitol Hill, Downtown Denver, and the Auraria campus. Many multi-family developments exist in the Golden Triangle, from 6th Avenue to Gates Rubber along Broadway.

• One-bedroom apartments range from $900 to $1,550.
• Renters can find value in this neighborhood because of the competition between apartment complexes to fill units.

What to Do – Hire Professional Management

Owners in rental markets facing rent pricing pressure should consider hiring DenCO Property Management and Sales to compete better. DenCO finds and keeps tenants, ensures rentals comply with local and state regulations, collects and manages security deposits, accepts rental payments and tenant relations, and provides any needed repair and maintenance. We will do the following to keep our owners’ rentals competitive in 2024.

1. Rental properties must be clean, updated, and present well.
2. Marketing to rent units must be effective.
3. Pricing must be aggressive but close to market to attract quality tenants.
4. Avoid large rent increases
5. Avoid turnover to keep good tenants in place.

Owners needing help keeping their properties full and competitive should hire DenCO. DenCO manages over 150 homes, duplexes, and apartment rentals in the DU, Washington Park, and other Denver neighborhoods and has been in business since 1990. Call us at 303-722-9688  or click here to complete a Contact Us form.