Another Strong Year for the Front Range Apartment Market

The Front Range apartment market performed as expected with the slight seasonal increase in vacancy and decrease in absorption and rents in the fourth quarter. Metro Denver absorbed 204 fewer units this quarter than the fourth quarter of 2017. Despite this, all three markets experienced increases in average rent compared to last year. Metro Denver and the Northern Colorado market experienced rent increases of 4.4% year-over-year, while Colorado Springs experienced a year-over-year increase of 2.6%, respectively. Vacancy in Metro Denver decreased by 10 basis points from the last year; however the Colorado Springs and Northern Colorado markets experienced increases in vacancy of over 30 basis points. The uptick in vacancy is due to significant inventory expansion, as new deliveries continue to hit the market in order to meet ever-present demand throughout the Front Range.