(The Center Square) – Renters in Denver are paying less and have more apartments to choose from, according to data from the Apartment Association of Metro Denver.

Vacancy levels increased throughout the Denver metro area during the fourth quarter of 2023, up 0.4% to 5.8%. Average rents declined 1% during the quarter, averaging $1,870 a month, while median rent was at $1,785.

According to the trade group, the research shows the housing market is stable as the quarterly decrease follows a trend of relatively flat rent increases during the last two years. “In a landscape where most costs are on the rise, this reduction in rental rates, albeit small, is a positive development for renters,” Mark Williams, executive vice president for the Apartment Association of Metro Denver, said in a statement.

Five counties showed a decrease in vacancy rates while two counties showed increases. Adams, Denver and Douglas counties had the highest vacancy rate at 6.1%. The largest vacancy increase was 80 basis points to 5.6% in the combined Boulder and Broomfield counties. Jefferson County had the lowest vacancy rate at 5.1%.

The vacancy rates of apartment buildings constructed since 2020 had a 6.7% rate compared to 4.9% in those built prior to 1970.

Despite decreases in rent and increases in vacancies, the organization says the region still faces a housing shortage.

“It’s crucial that we don’t let current data distract us from the goal of expanding housing availability,” Drew Hamrick, senior vice president for government affairs and general counsel for the association, said in a statement. “More housing units mean less expensive housing. As we move into 2024, the focus should remain on advocating for more housing development, allowing the market to naturally find its equilibrium.”

The organization reported studio apartments have the highest vacancy rate at 7.4% and larger apartments are more difficult to find. It also reported smaller communities are experiencing reduced vacancies.

The organization says its constituents are concerned about possible new laws and tax policy as the Colorado General Assembly returns.

“Developers and investors remain nervous about the political climate in Denver and Colorado, especially as we head into the 2024 legislative session,” Williams said. “We hope the state legislature takes the impact of their 2023 laws on housing providers and the steady rent rates into consideration in regard to any new legislation, ensuring a balanced approach that supports both the real estate market and the needs of the residents.”