Denver rent increases follow East and West Coast trends

by | Dec 22, 2021 | Blog, Denver Real Estate Market | 0 comments

There was a time, regarding apartment rents, when Denverites could rest assured that at least they weren’t paying the exorbitant fees those on the East and West coasts were shelling out.

But after a 20.7% rent growth in Denver over 2021, that assurance is fading.

Zumper, a San-Francisco-based apartment-finding firm, recently compared Denver’s year-over-year rent growth to trends seen in cities like New York, Boston and Miami.

“The major cities in the Mountain West have experienced rapid rent growth throughout the pandemic, but rental patterns in Denver have more closely resembled those among East Coast cities, where rent dropped after the pandemic hit, but is now soaring to all-time highs,” notes the report

Denver rents ranked 16th highest on a list of major cities, with an average rate of $1,690 for a one-bedroom apartment. This compared to $3,100 average rent for a one-bedroom apartment in New York.  While the bottom line for Denver residents is nearly half of New York’s, both cities shows similar year-over-year rises: 21.60% for New York and 20.70% in Denver.

With demand at a continued high, the rents aren’t likely to decrease anytime soon. The 2021 Denver Metro Apartment Vacancy and Rent Report showed a vacancy rate of 3.8% for metro-area rentals.

To meet the rising rental prices “comfortably,” notes Go Banking, Denver renters need to make “a little over $100,000” while sticking to the “50/30/20” rule of budgeting (50% for needs; 30% for wants; and 20% for paying off debts).

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