By Jennifer McRae

DENVER (CBS4)– Rent prices keep going up in Denver as vacancy rates continue to drop. The average cost of rent has gone up $107 since the beginning of the year.

(credit: CBS)

According to the University of Denver Daniels College of Business, there are fewer places to rent. The current vacancy rate has dropped from 5.5% in January to 3.7 in June. This is because more families are choosing to renew their leases rather than buy a home as housing prices continue to soar in the Denver metro area.

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Another reason, moratoriums and programs assisting families with their rent which leaves fewer units available.

(credit: CBS)

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“That is extremely low. That is what we in the ballpark call ‘frictional vacancy’ and that is just a turnover of units when one moving out and another moving in where you get a couple of weeks lag of empty space. But we are extremely low on empty space in availability,” said Ron Throupe with the University of Denver.

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Throupe also believes costs could continue to grow over the year due to inflation and labor costs.

Jennifer McRae