eLeasing is committed to keeping you on top of the rental market and changes in the industry. To keep at the top of occupancy for your Apartment or Vacation home you have to be knowledgeable and have a solid game plan. Below is an article from 9news that shows the market in Denver is very strong. Many locations may run the risk of being above the market as peoples needs change. The question Is how do you stay high occupancy even in a bull or bear market? Let our team at eLeasing show you our proven solution despite the market.
KUSA – There has been a long-standing belief that it is better to own your home rather than rent for a lot of reasons.In recent years however, the financial disparity has been growing rapidly and it is better than ever to be an owner instead of a renter.
This first graphic shows the gradual rise in rental rates nationwide since 1988.
Here in Denver, the average rent has increased approximately 11 percent in the past year and it will likely continue to be increasing significantly in the coming years.
How much more could it be costing to rent versus own? The graphic below shows the percentage of income:
– Today’s homebuyer will spend on a mortgage
– Today’s first-time homebuyer will spend on a mortgage
– Today’s renter will spend on rent
While these are national averages, a renter will spend twice as much of their budget on rent than a homebuyer will spend on their mortgage.
This is in large part due to mortgage rates being so low and the demand for rental housing by the millennial generation being so robust in recent years.
Percentage of income (Photo: Wade Perry)
To illustrate this last point in a different way, the graphic below clearly tells the tale of two trains going in different directions. The percentage of income going to rent has increased by 20 percent and the percentage of income going to mortgage has decreased by 30 percent.
One of the most important points every renter should know is that THEY ARE ALREADY PAYING A MORTGAGE – it just happens to be their landlord’s mortgage.
Lastly, if you or anyone you know has been thinking about selling their home, now is an extremely good time to do so as there are a lot of buyers ready and able to buy and rates are low which means more of them can afford your property now versus in the future when rates are higher.
The cost of renting vs. buying (Photo: Wade Perry)
The median asking rent