As the population of Denver continues to grow, the cost of renting has increased in proportion to the demand for rental units. According to RentCafe.com the average rental cost in Denver presently is around $1,600 for an 850 sqft apartment. This has grown from a 2018 price of $1,500. In comparison to other metro areas of Colorado, Denver rent prices are third to Littleton and Boulder. What are the trends and will rent continue to rise for the coming years?
The cost of renting in Denver varies with the size of the apartment, the amenities offered, and the area in which you choose to live. An apartment in downtown Denver would cost an average of $2,100. If you opted to live in Lincoln Park or Sun Valley, rent will likely run $1,900-$2,000 (as of 2021). Affordable rental areas in Denver include:
- Glendale (Denver University)
- Mar Lee
Payscale ranks Denver’s cost of living 11% higher than the national average. Newcomers are looking for suburban areas that offer metro city living amenities without the price tag for premium rental apartments.
Why Denver Rent Prices Continue to Increase
For the past several years, Denver’s metropolitan area has continued to grow rapidly. Consequently, home and rental costs have risen. A Denver Post article lists Denver as the nineteenth largest metro area in America with a population of three million people. Because of the demand for housing, house and apartment prices in Denver are on the rise. Additionally, Denver residents are renting longer due to the high cost of purchasing a home. Thus, the demand for rental units has risen in correlation. Vacancy rates are extremely low, and rental costs have increased.
Economy Driven: Denver Rent Prices
Employment opportunities in Denver have resulted in several out-of-state residents coming to Colorado. It is one of the top states for employment growth. Denver is an area considered one of the best American cities for launching a new business. It is the third best city in the US. for small businesses according to Buz2Credit.
Besides startups, other businesses have relocated to Denver because of its business-friendly environment. The oil and gas boom has added new jobs in Colorado. This has resulted in migration to Denver. Additionally, younger people looking for jobs in Denver’s job-rich market have moved and retirees are moving to Mile High City. Both groups are drawn by the number and variety of residence options, the over three hundred days of sunshine, the four distinct seasons, and Denver’s many recreational activities. Check out our article on top 10 neighborhoods in Denver for young professionals.
Another draw is Colorado’s legalization of recreational marijuana.
How Denver Rents Compare to Other Areas
The BW Bacon Group compared rental and homeowner costs in Denver to other American cities. While it is relatively expensive to live in Denver, it is much more affordable than many other American cities.
In New York City, average house prices are in the range of $1.3 million. In San Diego, the same house would cost less than half that. Denver homes average $340,000 in Denver. This same trend is true of Denver rentals. In places like Los Angeles and San Francisco, rents average between $1,700 and $2,600. Denver rental of like-sized units averages between $900 and $1,500.
Rent Café reports the cost of renting a 700-square-foot apartment in Seattle averages $1800 to $1900 a month. Portland apartment costs average $1200 to $1700 for a fourteen-hundred-square-foot apartment. The average rent in Austin, Texas is $1100 to $1400. Rents have remained steady for the past two or three years there. The location of the apartment affects rental prices.
Why Choose to Rent in Denver?
Downtown Denver apartments are close to work and/or recreational opportunities. This location avoids long traffic-clogged, time-consuming commutes. In downtown, renters can walk, take public transit, or bike. Many don’t own cars. To move in, renters need only the first and last months’ rent. They don’t have hefty down payments, mortgages, appraisal fees, closing costs, homeowner’s insurance costs, maintenance costs, and property taxes.
Apartment owners tend to use every available space efficiently. They don’t collect a lot of extra possessions. Their costs don’t include furnishing rooms—like guest bedrooms, guest bathrooms, dining rooms, and living rooms—which are seldom used. Other reasons to rent in Denver include:
- Renters don’t have to mow lawns, shovel snow, plant, and weed flower beds, and fix broken appliances. Amenities like pools and exercise rooms are also free for renters.
- When apartment renters go on vacation or travel for work, they don’t have to hire homeowner checkers for insurance purposes. Apartment renters simply inform the building superintendent.
- Often, jobs require moving to different locations. Renters do not have to sell a house and hire movers for their many possessions. Subletting an apartment is often handled by building management. Their move is uncomplicated as they move from a rental in one city to another in their new location.
- Relocating to a new community is easier if you are renting. New renters have built-in opportunities to meet others in their building.
- Many amenities are part of the rental package. Moreover, the building’s management maintains these amenities.
- Apartment complexes have parking for both renters and guests. Walkways and parking lots are maintained and kept free of ice and snow.
- Building security is part of apartment living. This often includes 24/7 security, video-surround surveillance, locked entry, and front desk security.
Expert Predictions for Denver Rent Prices
With a population growth of 1% a year, the demand for houses and rentals in Denver will continue to increase.
Colorado Biz magazine notes that, in the tumultuous time of COVID and economic challenges, Denver real estate has held up strongly. They predict that Denver will continue to grow and that a shortage of available homes and rentals will increase the cost of both rent and homes’ market value.
This sentiment is echoed by an article in The Denver Post. Their predictions are based on the record low in metro Denver properties this November compared to the same month in past years.
How Can Urban Phenix Help?
If you are considering a move to the Denver area, check out the luxurious yet affordable apartments Urban Phenix has to offer in the suburban areas around Denver like Glendale. As one of the more affordable and highly rated areas, Glendale offers the amenities of Mile High living without the price tag.
This well-respected management company has many rental properties in the Denver area. One of them is just right for your lifestyle and budget. Urban Phenix guarantees luxury options at affordable rents. Their goal is to make renters feel comfortable and well cared for. From first rental occupancy until the moment you leave, Urban Phenix office and maintenance staff will strive to ensure that you look forward to coming home to your rental unit every day.