Denver's average rent jumped double digits by percent over past year, analysis finds
The average rent for both a one- and two-bedroom in Denver has jumped double digits by percent over the past year, according to a new analysis of data from Apartment Guide and Rent.com's multifamily rental property inventory.
Comparing average rent from October 2020 to October of this year, the analysis found average one-bedroom rents in Denver cost $2,222 and average two-bedroom rent is $3,333.
That's an 11.92% and 18.82% change from the prior year, respectively.
"In the country's largest cities, rents are rising more often than receding," according to Apartment Guide. "Seventy-nine percent of one-bedroom rents and 78 percent of two-bedroom rents in the 100 most populated cities have seen rent increases year-over-year."
The apartment-finding firm Zumper in October said Denver's year-over-year rent growth resembled trends more commonly seen in East Coast cities like New York City, Boston and Miami.
The Apartment Guide analysis found the cities with the biggest increases in one-bedroom rent prices year over year included Gilbert, Arizona (+89.1%), Long Beach, California (+55.4%), Orlando, Florida (+54.9%), Anaheim, California (+50.8%) and Spokane, Washington (+48.6%).
Cities with the biggest decreases in one-bedroom rent prices year over year included Toledo, Ohio (-22.0%), Miami (-16.4%), Kansas City, Missouri (-12.1%), Lincoln, Nebraska (-11.7%) and Indianapolis, Indiana (-10.3%).
Low home inventory is putting "upward pressure on the rental market as renters who would have transitioned to their dream homes are priced out of the home buying market," according to the Apartment Guide analysis.
Denver’s month-end housing inventory dropped a staggering 33.41% from October to November, the largest percentage decrease on record, according to a market trends report from the Denver Metro Association of Realtors.
"With 2,248 active listings on the market and that number expecting to go down by the end of the month, 2022 could be a wild ride," said Andrew Abrams, DMAR chair, in notes accompanying the report.
Home prices are expected to rise another 5% in Denver in 2022, according to a December Realtor.com analysis.
Meanwhile, Richardson, Texas-based RealPage Inc., which tracks the rental-housing industry, is forecasting apartment rental rates to grow 8% year over year nationally in 2022. Santa Barbara, California-based real estate research firm Yardi Matrix is predicting 4.8% growth in 2022.