If you’ve been looking lately for a rental property in Denver, you know that rents are high. Why? There are a number of reasons, including low inventory, rising equity and not too much new construction.
It means that if you want to rent your property, now is a great time and using a Denver property management service can help you get it rented for the best income possible.
Rental property is hot due to low inventory
Denver real estate, for rental properties, is hot right now. There are a few reasons for this. One is low inventory. When the housing bubble burst, people stopped buying, generally, and started renting. Many were people who lost their homes to foreclosure and couldn’t purchase another home.
Others were younger people who saw the bubble crash and decided that home ownership was too risky. Renting was better. That means that many more housing was being rented and there were fewer homes available. That trend has continued. Those who have been through foreclosure needed time to repair their credit before being able to buy again. Others just kept renting.
Another reason is housing market prices are higher
Another reason is the fact that now that the markets are rebounding, those who own now have a lot more equity in their properties. That makes housing that’s for sale more valuable, and more expensive. Prices are going up, another reason for higher equity, meaning that those who may have been able to buy a few years ago are finding themselves priced out of the market. They have to continue to rent, another factor in low inventory.
Factor in low amount of new construction
The last factor in higher prices is the fact that there hasn’t been a lot of new construction of apartments… yet. That factors into low inventory. If more housing units are built, there will be more available and more choices for tenants. That will help stabilize prices, maybe even help push them down a bit. Construction is picking up, but it takes time to get places built, so any relief from higher rents from this is some time away.
Rents are high in Denver. And maybe that’s just because it’s a cool place to live too!
So use Denver Realty and Rentals to assist you in fulfilling your real estate investing goals by capitalizing on this crazy time in the housing market. NOW is the time to buy property to use as an investment and we can help you find the best deals! 303-452-5853