Denver housing market favorable for homeowners as rents hit record highs
When exploring real estate in Denver, people may have an extra incentive to enter the growing ranks of homeowners rather than remain in the rental market. According to a report from the Apartment Association of Metro Denver and the Colorado Division of Housing released the end of July, average rents for Denver-area apartments in the second quarter of 2012 were, on average, $65 higher than last year and $27 higher than in the first quarter of 2012, the Denver Business Journal revealed.
These rises represent the highest yearly gains that Denver has seen in more than 20 years, with average rent in Denver standing at $979 and the state average at $942. The source also revealed that the vacancy rate for the Denver metro area continues to fall, standing at 4.8 percent in the second quarter and tying for the lowest vacancy rate in any quarter since 2001. One local real estate expert told the publication that Denver has been made into "one of the top-rated cities for multifamily in the nation." He added, "For the next couple of years, we're going to continue on this trend until construction can deliver some units to catch up."
A recent article in The Denver Post cited a new analysis that shows buying homes to be a better financial decision than renting, as long as the homeowner plans to live in the home for a minimum of 2.5 years. The analysis indicated that 83.6 percent of Denver metro areas only require homeowners to live in a home for three years or less in order to break even financially. With some areas of the metro allowing homeowners to break even after a mere 1.6 years, people looking at homes for sale in Denver can feel confident in their choice to buy rather than rent.
The trends observed in Denver can be seen across the state of Colorado, according to the Denver Business Journal. As the U.S. economy and job market both continue to recover, it could be expected that the apartment market will continue to "tighten," professor of real estate Ron Throupe said.
More positive news for people considering an investment in real estate in Denver comes from yet another report on August 3 from the Denver Business Journal. The source revealed that July showed a drop in home sales prices in the metro area. All the findings from these various recent reports could be taken to be point to a favorable buyer's market in Denver.