The Apartment Association of Metro Denver just released second quarter data for multifamily housing in the Denver Metro Area. The report for house, condo 1-4 family comes out in a few weeks. There are not many surprises in the report. Here is a summary:
Vacancy rate declined a little, to 5.0%.
This is a normal seasonal pattern. 2Q is usually the lowest vacancy rate of the year. The 4Q is usually the worst, Historically, 3Q is usually a little less than 2Q, so expect a little improvement on the next report. Buildings that came in line on/after 2010 had the highest vacancy rate at 10%.
Rents were up a little. This was in line with usual patterns of seasonality. The increase was a more “normal” increase, not the super-heated increases we had been seeing. This points to a more stable, balanced market, which is good for everyone.
Discounts / concessions were up, which is mostly driven by a lot of big new luxury product coming on line.
Don’t expect this to go away anytime soon (24+ months)