Denver’s rental market is booming. Today’s Rocky Mountain News reports that the overall vacancy rate for non-apartment unit properties has dropped to 4 percent, which is the lowest rate since 2001.
All Denver area counties reported similar decreases in rental vacancy rates including Adams County, which reported the biggest drop to 5.5 percent from a whopping 11 percent in 2006. Denver County reported the lowest vacancy rate of a 3 percent compared to over 6 percent last year.
As demand for rental properties increases, average monthly rents in some areas are following suit. The Rocky’s article reports that average monthly rents have increased across the Denver metro area to $946.07. Douglas County has the highest average monthly rent of $1,325.86 while Denver County’s average rent is only $879.23.
There are several factors fueling Denver’s strong rental market including a locally stagnant real estate market coupled with the national mortgage meltdown. Homebuyers are a bit weary to jump into a real estate market that is currently facing so much uncertainty. In addition, homebuyers are having a much more difficult time obtaining financing as the lending market tightens its belt. In response, many Denver homebuyers are finding that renting a home is a temporary and safe option.
Investors are encouraged by Denver’s strong rental market and are taking full advantage of it by buying foreclosures or other properties that are priced far below market value. The investors hope to sit on the homes for a few years and make large profits when the market rebounds. In the meantime, renting the properties is a perfect option, especially when there are so many takers.
For more information on Denver’s rental market or regarding investing in the Denver real estate market, please contact TeamCox Realtors.
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