The Denver metropolitan area apartment vacancy rate have dipped to 3.7% in the third quarter from the 4.9% rate in the second quarter, according to the Apartment Association of Metropolitan Denver. Year-to-date, 3,061 units have been added to the market, but 6,674 units have been absorbed, Steve Rahe, an apartment broker with CB Richard Ellis told GlobeSt.com.

Buildings with 350 and more units have the highest vacancy rate at 4%, down from 5.6% last quarter. Buildings with 200 to 394 units are showing a 3.8% vacancy rate in comparison to 5.1%. The lowest vacancy rate - 2.3% - prevails in buildings with nine to 50 units.

"Historically, larger buildings have the highest vacancy rates," explains Gordon Von Stroh, a University of Denver business professor, who authors the quarterly report. The average monthly rental rate has set a new record of $762.03. Virtually every quarter, a new record is set, notes Von Stroh. A year ago, the average rent had been $725, equating to a 5.5% jump, while home prices are rising closer to an average of 1% a month.