Daily asking rents for apartments in Denver are on the rise, a positive sign for landlords ahead of the Spring and Summer leasing season.

Apartments located in Denver’s urban core were largely behind the appreciating rent growth. Urban rents are up by 3% in the first quarter, compared with 2% rent growth recorded in suburban properties.

The rise in demand for urban units is a promising sign given that the widespread economic disruption caused by the coronavirus pandemic had renters chasing affordability through 2020. Average rents in downtown Denver are 30% higher than in the surrounding suburbs, and with renters once again feeling comfortable paying higher rates, this portends increased confidence in Denver’s economic outlook.

In addition to rising rents, search activity for Denver units has climbed in the new year. Search activity has proven a good leading indicator of demand, but the Denver apartment market still has a significant pipeline to work through, and landlords will need to brace for a wave of new supply that is expected to pour into the market in the next several quarters.