After years of soaring demand and the associated rising rents, Denver’s apartment market is showing signs of softening, due to the coronavirus pandemic.
According to Denverite, the median rent for a two-bedroom apartment in Denver was $1,345 in June. This represented the third straight month of rent declines, as the pandemic “shifted rental demand away from more expensive areas.”
Additionally, stay at home orders, eviction moratoriums and uncertainty about the future have slowed people from moving, notes the Denverite. The decrease in demand has caused landlords to drop rents
In good news for landlords, however, the news site also reports that even in the fourth month of the pandemic, the rate of rent collection had only slightly decreased from June of 2019.
“The Colorado Apartment Association said 95.4% of renters had paid by late June this year, compared to 96.1% for June of last year… The apartment association said its members report they have been able to cover their mortgages, though some smaller landlords or those with many tenants working in hospitality and other hard-hit sectors report lower payment rates.”
As time goes on, some expect the news to dim. According to the Denverite, the Colorado-based COVID-19 Eviction Defense Project estimates that by the end of September, at least 19 million people—420,000 of them from Colorado— face eviction nationally because of the coronavirus’s impact on the economy.
The CAA advises tenants coping with financial issues due to the pandemic to try to work with their landlords and discuss the potential to pay in smaller increments over time.