Denver rents rise: Ownership may be the better option
According to the Colorado Multi-Family Affordable Housing Vacancy and Rent study produced by the Colorado Department of Local Affairs, affordable rental housing is on the decline. Not only are rents rising, but vacancies are decreasing, creating a competitive market. Yet, houses for sale in Denver remain relatively low in price.
The statewide median affordable housing rental rate was $680.72, while the statewide average was $698.68 in the first quarter of 2011, according to real estate statistics from one local agency. These figures were only expected to rise for 2012.
In contrast you could purchase a property listed at $100,000 with a 20 percent down payment and have a monthly payment hovering between $400 to $600. However, these low payments are only attainable if you have good credit and can obtain a mortgage with an interest rate below 4 percent.
Consider checking out the MLS listings in Denver to find a more affordable housing options – homeownership. Not only will your monthly expenses remain relatively low, but you will have something to show for the expense that will act as equity in the future toward other large purchases.