Now may be the time to rent, according to a recent study conducted by Daniels College of Business professor Gordon Von Stroh.

Denver area vacancy rates are at their highest levels since 1986.

The Apartment Association of Metro Denver said vacancies are currently at 11.7 percent, a jump from last year’s 8.9 percent rate.

In order to keep renters interested, landlords and leasing agencies are hashing out major promotions. They are advertising one month of free rent, free utilities and even free television sets.

This is good news for students, but bad news for Colorado’s economy.

Von Stroh conducted the survey for the Apartment Association of Metro Denver. He chalked the percentages to a number of different factors.

“The stagnant national and local economy is having an impact on things. Number two is the low interest rates, which makes it easy for renters to buy homes,” he said.

Although vacancy rates are high, the actual rental price of apartments hasn’t dramatically changed.

The medium rent for the metro area is $813, which is up $6 from third quarter reports in 2001.

Stroh said that the report doesn’t show substantial rent changes because apartment promotions aren’t calculated into the equation.

New apartment developments are another factor in the rental climate. Despite the vacancy numbers, 4,000 to 5,000 apartment units will be completed this year.

According to the apartment association, these new projects were planned several years ago, before the economy took a downward turn.

A recent Wall Street Journal article said cities with dependencies on the high-tech industry or heavy construction of new apartments are affected with the most pronounced rental drops.

Denver, along with Austin, Texas and Atlanta, topped the list.

Students have an opportunity to get cheap rentals as they head into the “real world.” The vacancies are high because the economy is bad.

Denver needs more jobs in order to get things, and people, moving again.

Indeed, now may be the time to buy. Analysts suggest renters save a portion of their monthly rent for a down payment on a home.