ECONOMY
ron l. throupe | UNIVERSITY OF DENVER
It’s hard to deny: Denver is now a “major” city
F
or some, rent increases indicate a problem,
while for others, it is a sign of a desirable
place to live and work. Denver is known
to have a highly educated workforce and
a greater than average amount of “professional
service jobs” compared to national averages (Bureau
of Labor Statistics).
The Denver metro unemployment rate continues to be below the national average—the US
unemployment rate as of November was 5.0%, the
Colorado overall rate was 4.0%, and the Denver
metro area rate was 3.8%. These numbers are partially a result of job creation, estimated at 40,000
jobs for the metro Denver area this past year, and
partially due to existing jobs waiting for those
moving into the area. Thus, the future levels of rent
increases will be determined by who rents within
the Denver metro area and how wage increases
relate to rent increases.
This quarter saw rents continue to increase
while vacancy went up slightly. Traditionally, an
increase in vacancy in the 4th quarter is a seasonal increase. The 4th quarter 2014 change was
no different and within historical expectations. The
previous year the quarterly change for this period
was the same percentage increase of 0.8%. What
www.aamdhq.org
“The old portrayal of Denver
being a “cow town” is fading.”
is different this year is that rents did not slide or
stagnate with the seasonal vacancy increase.
Rents for this quarter reached another new
high with median rent up $14.49 and average rent
up $23.16 per month. The average changing by a
greater amount than the median is a reflection of
new units at much higher rents than the median.
The real question is whether rent