A week or so ago, Zillow came out with a new forecast for the Denver rental market: Zillow has warned renters to prepare for rents to spike again in Denver as we head into 2017. Currently the rent index in Denver is approximately $2,013 a month, the highest of any major metro area not located along a coast. The next large metro cities do not even come close to the rent index as Denver with Chicago at $1,643, Dallas at $1,543 and Phoenix at $1,247 a month.
For those of you hoping that Denver rents may be going down, especially with all the new apartment builds going on around the city, I hate to disappoint you but that is far from the case. Zillow predicts that rental growth will continue to be strong, even stronger than we have seen in 2016. They are calling for metro Denver’s already elevated rents to rise another 5.9% in 2017 following a rise of 4.1% this current year. The only two cities that will see a steeper rent rise are Seattle with a 7.2% increase and Portland with up to 6% increase. The United States as a whole is looking for rents to rise 1.7% in 2017, which matches the pace for 2016.
Zillow’s survey included apartments and single-family rental homes that caused a higher rent average. But this data supports the fact that tenants who are looking for more affordable options are bidding up rents in outlying communities and older suburbs. The next year is calling for over 11,000 new apartments and all are calling for pricier rents. Denver is seeing a rise of high-rise luxury apartments with ten projects at twelve stories or taller, including one at 34 stories and one at 31 stories located in the Five Points area and in downtown Denver.
For more numbers and information, read more from the Denver Post here: http://www.denverpost.com/2016/10/06/prepare-for-rent-hikes-again-zillow-warns/
All of these rent increases only mean more pressure on Denver renters who are already seeing a lot of their hard earned paychecks going towards rent each month. I have met with numerous new clients over the past year that have decided it was time to take the jump into owning their own home because financially it made more sense and in the long run, they would be setting themselves up financially. This market can be an intimidating one, with a large amount of buyers and low inventory, many homebuyers, especially new ones, are scared to get into the market. That is why you find an agent who is going to go to bat for you every step of the way, from the day we decide to work together to the day I hand you over your keys to your new dream home. I have worked in this industry for many years and have watched the Denver market have its share of ups and downs. But the Denver has always been a steady one and that is not looking to change anytime soon. For what you are paying in rent, I can sit down and go over numbers to show you what you can afford in a house paying less than your current rent and getting more bang for your buck.
If you think it is time to get out of the renter’s rut and jump into the housing market, give me a call today or shoot me an email and let’s grab coffee to talk about how I can best assist you as your real estate agent.