The Colorado Division of Housing recently released its second quarter, “Metro Denver Area Residential Rent and Vacancy Survey” which revealed several trends with major implications on both renters and landlords. As your expert property management resource, we at Doctor Relocation, broke down the data to assist you, our friends/clients, in making the most informed decisions possible based on current market trends and conditions. Here is what we make of the data:
Landlords are thriving in today’s market and here’s a brief list explaining why-
a. Increased income from rising rental rates
b. Shorter periods of vacancy and more consistent cash flow
c. Larger pool of qualified applicants to choose from
Based on the decades long trends of increasing rents and falling vacancy rates in the Denver Metro Area, it’s apparent that these are great times to be a residential landlord. So if you have ever considered purchasing a residential income property or buying a new home and converting your current home into a rental, now is the time.
Renters are suffering in today’s market in the following ways-
a. Larger percentage of income to rent and less disposable income
b. Larger pool of applicants to compete with over limited rental housing inventory
c. Missing out on buying opportunities and temporarily low interest rates
Data shows that the current residential rental climate has not been favorable to renter’s budgets. And with mortgage rates still low in many cases it is cheaper to own than to rent. Those currently renting would be wise to turn buyers as rent rates remain at an all time high and mortgage rates still near historic lows.
(Graphs Credit: Colorado Division of Housing, “Q2 ’13 Metro Denver Area Residential Rent and Vacancy Survey”)