Denver has seen a lot of rent growth over the last few years. As a result, many of it’s submarkets have followed suit. Renters attracted to the Denver market have expanded into the surrounding cities, such as Aurora, Lakewood, etc. As a result, some submarkets have begun to outpace their main market, leading the way for rent growth rates in their respective areas. According to data from RealPage, Inc., Denver ranked in the top six markets for rent growth between 2010 and June 2018 with a total cycle rent growth of 51.8%. While that’s an impressive number to say the least, its submarket of Southwest Aurora took the lead when it came to rent growth during that time.
Southwest Aurora is the Place To Be!
Southwest Aurora was named as Denver’s top performing submarket for rental growth between 2010 and June 2018. During that 8-year cycle, the region saw an average of nearly 7% annual rent growth according to RealPage. Inc.’s data. The total cycle rent growth for that 8-year period was 59.7% compared to Denver’s 51.8%. During that cycle, rent increases reached their peak in 2015 with rent hikes as high as 14%. However, things started to cool down between 2016-2018 to about 5%. With numbers like that, Southwest Aurora is definitely a market to keep an eye on as we move into 2019.
As Denver continues to expand, many renters will continue to look to the outlying submarkets to call home. And as more people expand to the surrounding submarkets, like Southwest Aurora, we may see them continue to out-perform the main market when it comes to rent growth. This is excellent news for anyone who owns a rental property in Southwest Aurora, and for any real estate investors looking to expand their portfolios. Keep an eye on Denver and its surrounding submarkets in 2019!