Rising rents in Denver make purchasing a home affordable by comparison
Rising rents and decreasing vacancy rates have transformed the housing market in Denver. Now more than ever, buying one of the houses for sale in Denver is an affordable option compared to renting, the Denver Business Journal reports.
"Rents continue to increase as demand grows faster than the production of new units," Ron Throupe, professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management, told the news source. "Rents often tend to moderate a bit during the first quarter, but this year the rent rose to an all-time high instead."
The overall vacancy rate for Colorado dropped to 5.2 percent, according to a state Division of Housing report. This is a significant decrease from the 5.6 percent rate seen in the last quarter of 2011 or the 5.5 percent noted a year ago.
While apartments are harder to find, they are also becoming more difficult for people to afford. Rents in the greater Denver-metro area rose 4.5 percent in from 2011 to 2012. The average rent in Denver in the first quarter of 2012 was $952, an increase from the $911 residents spent, on average, for rent just one year earlier.
If you’re tired of paying high rents, consider searching the MLS listings in Denver for an affordable home in an up-and-coming area.