DENVER – Despite slowing this year, rent is again expected to rise in Denver next year, and prices are expected to be even higher in its suburbs, according to new a forecast from Zillow.
The real estate information company predicts rent will rise by 5.9 percent in Denver over the next year – the third-highest rate in the nation behind Seattle (7.2 percent) and Portland, Oregon (6 percent).
Coming in behind Denver are Cincinnati (5.2 percent), San Francisco (4.9 percent) and Los Angeles (4.8 percent).
Denver’s Zillow Rent Index is also among the highest in the country, and at $2,013 is the highest rate index in a city not along either coast.
But Zillow expects some of the largest rent growth over the next year to happen in Denver’s outlying suburbs, where growth is forecasted between 8 and 12 percent.
Rent is expected to rise by nearly 11 percent in Bailey – on Highway 285 southwest of Denver – and by 12.5 percent in the 80421 zip code, according to Zillow.
A similar rise is expected in Kiowa, which saw rent increase by 13 percent over the past year and is expected to see further increases of nearly 12 percent.
Also expected to see large rent increases are Derby, Greenwood Village, Elizabeth, Twin Lakes, Black Hawk, and northeast Aurora, according to Zillow.
Aurora-based broker Dave Edwards attributes the looming rent spike in the area to new development and job growth, pointing out that the 80011 zip code highlighted in the report is home to the Anschutz Medical campus, the new VA Hospital and commuter rail line.
"You're going to find that it's one of the more affordable areas of town and yet it's connected to some of the largest job pools in the metro area," Edwards said.
All the metro-area trends are far larger than national trends, where rent growth is expected at 1.7 percent over the next year on average, according to Zillow.