For residents of Colorado, it is no secret that the rental market is absolutely booming right now with some of the lowest vacancy and highest rental rates in the cities history. And as the economic law of supply and demand dictates, as availability decreases, prices increase, this means that apartment living is getting more and more expensive in Denver with home purchases actually starting to become the more economic option.
So in this week’s article we are going to discuss some of the trends that we have seen in the Denver rental market and where we think things are going to be going.
Since 2009, the rental rates in 1, 2, and even three bed properties have almost doubled! Going from $943 for a one bed rental to $1689! While this is certainly a jump, it is to be expected when a city sees the kind of growth that Denver has seen in the past several years.
We are also predicting that these rates will start to decline again soon as consumers begin realizing how much more economical it is to mortgage a home, and then the rental market will have to level out (as all markets inevitably do) and reach more of a homeostasis.
While we certainly cannot say for sure, these trends tend to have a way of evening themselves out, and hopefully the general demographic of Denver will start to attract more families and couples looking to buy homes instead of renting.
Only time will tell.