Denver Property Management Expert, Tena A. Dutenhoeffer talks about why rental prices are so high in the Denver rental property market.
Denver rental property can be a tough market. Finding a reasonably priced rental property can be almost impossible if you are a renter. Of course it’s great for our landlords and real estate investment property owners!
Here’s the statistics: a report released by the Colorado Division of Housing said the combined vacancy rate for apartments in six metro areas across the state, including Denver was 4.9 percent in the second quarter of 2012, down from 5.2 percent in the second quarter of 2011 and the lowest level recorded since 2001. The vacancy rate was 4.8 percent in the Denver area. At the same time, rents increased 7.4 percent.
Many things factor into why, but the biggest reasons are economic. The recession, foreclosure rate and lack of willing lenders for new mortgages caused a severe slowdown in apartment construction, and with more people out of owned homes, they need somewhere to live.
At the same time, many people who haven’t owned a home think twice about diving into home ownership. Younger people, just out of college or jumping from one job to another like the flexibility that renting gives. If they get a job transfer or change jobs, they are not tied down to a mortgage or having to sell a home.
In the Denver rental property market, however, that flexibility is a bit curtailed these days. With so few rental units available, moving around is not an good an option, leading to longer rental contracts and less turnover.
As in other metro areas in the US, the Denver rental property market is finding that rental properties are at a premium, and the situation isn’t looking to change any time soon!
If you are looking for a great Denver property management company that is responsive and ready to look out for your best interests, give us a call today! 303-452-5853