Metro Denver apartment rents rose for the third straight month in March, erasing all the declines that went in favor of tenants last fall, according to a report Tuesday from Axiometrics, a Dallas firm that tracks multi-family housing trends.
Metro Denver’s average effective apartment rent stood at $1,411 in March, up $22 from February and $51 higher than the recent low of $1,360 measured in December, according to Axiometrics.
The last time the average effective rent, which takes into account discounts and other landlords incentives, was above $1,400 in metro Denver was in August 2016. The gains this year, while modest compared to past years, quash the notion that the Denver apartment market had finally swung back in favor of tenants.
Rents rose 3.2 percent on an annual basis in March, which exceeds the national appreciation rate of 2.4 percent. Rent appreciation was strongest high-end, or Class A, apartments, and more subdued in Class B and C units.
“Increased Class A rent growth often is a leading indicator of overall market strengthening,” Stephanie McCleskey, vice president of data acquisition for Axiometrics, said in the report. Unlike what happened late last year, McCleskey predicts, the annual pace of apartment rent increases won’t dip below 2 percent this year.
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