Denver Renters Experience Historic Price Drop
Denver, CO – Renters in the Denver metro area received promising news at the close of 2024, as average apartment rental costs fell significantly, marking one of the largest price drops ever recorded for the region. According to a report from the Apartment Association of Metro Denver, the average rent in the fourth quarter dipped to nearly $1,850—around $70 less than in the third quarter and reflecting a 1.5% decrease from the same period in the previous year.
Cary Bruteig, a researcher at Apartment Insights, noted that this winter saw the "softest quarter" in two decades, with rents dropping across 31 out of 33 submarkets, primarily due to rising vacancies which hit nearly 7%. Douglas County led as the region with the highest average rent at $2,013, while Adams County offered the lowest average at $1,705.
Despite these reductions, rents remain high compared to pre-pandemic levels, but the decrease offers relief for families grappling with Colorado’s high cost of living. For those leasing an apartment at the end of 2024 versus earlier, potential savings could exceed $800 over a 12-month lease.
The trend culminates from a surge of nearly 20,000 new apartment units launched in 2024, which initially held demand but began to see negative absorption by year-end as more people vacated apartments than moved in. However, experts caution that while current rate declines may offer a temporary reprieve for renters, a slowdown in new construction could lead to rising rents once again in the future.
Mark Williams, vice president of the Apartment Association, emphasized the unconventional nature of this rent drop, as it contrasts with previous instances linked to recessions and job losses. According to recent Zillow reports, Denver joins Austin and San Antonio as the only major U.S. cities experiencing rental price declines, a trend that may spread to other locations as construction starts to slow.