Tuesday, July 13, 2010

Denver area’s apartment market continues improvement in 2nd Quarter

Metro Denver’s apartment market continued to improve in the second quarter, as the vacancy rate dropped and average rental rate increased, according to a Grubb & Ellis Co.report released Monday.

“Good news for the apartment sector keeps coming, despite a lack of significant job growth in the Denver region,” said the “Multi-Housing Trends Report,” produced by Grubb & Ellis’ Denver office. Apartments also are called multifamily housing and multi-housing.

In the second quarter, the metro area’s apartment vacancy rate dropped for the fourth quarter in a row — to 6 percent from 8.5 percent for the same quarter of 2009. “[That’s] the most prolonged positive growth for any Denver real estate sector,” the report said.

More than two-thirds of the area’s submarkets experienced a drop in vacancy.

As more vacant apartment units filled up, average rent rose to $862 per month from about $850 in last year’s second quarter. “The average rental rate of $862 per unit is now only 1.5 percent below the peak high set in mid-2008,” the report said.

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