Apartment Rent Update

Thursday, November 5th, 2015

Untitled design (1)According to the latest report by apartment housing research company Axiometrics, apartment rents in Denver grew by 10 percent in the third quarter, which was the fourth-­biggest jump in the U.S.

In the latest three months, apartment rents in Denver have increased 3.3 percent, which is the seventh­biggest jump in the country. However, one sign that the Denver apartment market may be cooling is a decline in the occupancy rate.

In the latest quarter, Denver’s occupancy rate fell 0.3 percent from the second quarter to 95.8 percent, which is still above the national average occupancy rate of 95.3 percent.

Last month, it was reported that the average monthly rent for a one­bedroom apartment in the city of Denver is $1,090, with two­bedrooms averaging $1,550. The two­bedroom rent average is 41 percent above the national average.

Millennials Still Living with Parents

Friday, September 18th, 2015

family quarrels with the husbands mother

According to a new Pew Research Center analysis of U.S. Census Bureau, more millennials are living with their parents today than at the depth of the recession, despite an improved job market.

The amount of young adults living in their parents’ homes has increased from 24 percent in 2010 to 26 percent in the first quarter of 2015.

During that same period, the unemployment rate for adults ages 18 to 34 dropped from 12.4 percent in 2010 to 7.7 percent this year.

Despite the fact that there are 3 million more Americans in the 18-34 range now than there were in 2007 (Millennials now outnumber Baby Boomers), the number who are living independently has fallen from 42.7 million in 2007 to 42.2 million today. This is directly related to the fact that because of skyrocketing home/apartment prices and wage stagnation, millennials are being priced out of urban living and home ownership.

Denver’s Rent Report Card

Wednesday, August 12th, 2015

smiling couple lying on sofa in new home

With rent constantly on the rise, the good news is that according to a new report from Apartment List, renters are extremely satisfied with the state of Colorado, as well as with the city of Denver.

Colorado ranked 4th for renter confidence, receiving high marks for city satisfaction, and Denver ranked 15th out of the 100 cities analyzed. Denver was also one of only 10 cities that received an “A” grade overall.

Apartment List surveyed 18,675 renters across the country, asking questions such as:

  1. On a scale of 1 to 10, how likely are you to recommend your current city or neighborhood to a friend or family member, with 1 being extremely unlikely and 10 being extremely likely?
  1. In the future, which of the following is closest to your plans: A. I expect to always rent, B. I plan to eventually buy a house or apartment, or C. I’m unsure.

Denver in Rent Territory

Wednesday, July 15th, 2015

House RentalIs it better to buy or rent a home in the Denver market right now?

According to a recent study by the Beracha, Hardin & Johnson Buy vs. Rent Index, Denver is in rent territory, which means that property pricing is out-pacing rents. At the same time, depending on your tax situation, credit score, amount of down payment available, a mortgage could be less than rent. That is why it is extremely important to work with a knowledgeable Reatlor®.

The study looks at 23 U.S. markets and determines whether it’s smarter to buy or rent.

Denver joins Dallas and Houston as the three top markets in rent territory, according to the study. However, keep in mind that if you want to rent, it’s still not going to be cheap. Last month, house rental rates jumped 12 percent compared with the same quarter a year earlier.

Job Seeking Millennials

Monday, June 29th, 2015

Capture4

For those who are determined to live here anyway, there is hope.

A new NerdWallet study analyzed the best places for millennial job seekers in Colorado, and found that jobs are plentiful across multiple sectors.

The financial website ranked 10 Colorado cities as the best for millennials seeking a job:

  1. Evans
  2. Englewood
  3. Golden
  4. Louisville
  5. Boulder
  6. Broomfield
  7. Denver
  8. Lone Tree
  9. Littleton
  10. Fort Collins

Eight of these communities are in metro Denver, and five of them are home to an RTD rail station. Two more cities outside the immediate metro area are within a 90 minute drive of downtown Denver. “Denver holds great pull as not only the state capital, but also as the largest city in a 600-mile radius,” the study said.

To compile the study, NerdWallet looked at three key metrics:

  1. Are there jobs in the area?

Rent Will Continue to Rise in 2015

Wednesday, February 4th, 2015

A recent Zillow report reflects the increase in rental prices in metro Denver, and found that renters paid $474 million more in 2014 for leases.

Renters in the Mile High City and surrounding cities paid $4.9 billion in rent, up from $4.5 billion in 2013, a 10.8 percent increase. Denver’s rental hikes were among the top three markets in the 50 analyzed, joined by San Francisco and Pittsburgh.

On average, the report found that renters paid $86 more per month in 2014 than the year before (a total of $1,032 extra per year). The report also found that an estimated 7,000 renters entered the Denver market this year.

Nationally, Americans paid $441 billion in rent in 2014 compared to $420 billion in 2013, a 4.9 percent increase.

Apartment Vacancy Rate Dropping

Tuesday, November 18th, 2014

Alaris Properties, LLCVacancies in metro Denver in the third quarter dropped almost a full percentage point to 3.9 percent.

In the second quarter, the vacancy rate was 4.7 percent.

From second to third quarter, the average rent in the metro area rose to $1,145 per month, about a 2 percent increase over the previous quarter when the average rent was $1,117 per month.

Net absorption of apartments in Denver increased quarter-over-quarter, with 4,470 units absorbed in the third quarter, compared with 3,127 last quarter.

The complete report can be found here.

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Tips for Small Spaces

Monday, October 13th, 2014

If you’re dealing with a small-apartment or small bedroom, here is a list of clever space-saving solutions.

1. A nightstand that mounts on the wall is perfect for a small bedroom. The open space underneath the nightstand visually enlarges the space, and you can also stash things like shoes and books underneath.

2. Mounting a lamp on the wall frees up space on top of the nightstand.

3. Hang shelves on the wall. Wall shelves provide a catch-all for books and other items in super-narrow spaces.

4. For even more storage, consider hanging shelves up high that run the length of the room. You won’t lose any floor space at all, and you’ll gain a lot of storage space.

5. A deep wall-mounted shelf can double as a desk.

6. Why not reclaim the unused space above your headboard? A shelf mounted above the bed adds extra storage, and lights underneath free up the nightstand.

Colorado Rent Will Continue to Rise

Saturday, January 4th, 2014

The apartment market was robust in the latter part of 2013, with vacancy rates hovering around 13-year lows and rents rising despite a resumption in multifamily construction. Builders delivered 5,560 new apartments in 2013, far above the 2,170 delivered in 2012.

Average asking rent jumped 6.6 percent year over year, to $1,115 per month. The Aurora/south area showed the biggest rent growth at 7.2 percent, while central Denver posted the highest average rent at $1,527 monthly. Douglas County had the lowest vacancy rate at 3.7 percent.

Because of this, rent in metro Denver is expected to grow 4.9 percent by the end of 2014, to $1,527 monthly. Douglas County had the lowest vacancy rate at 3.7 percent.

The good news about rent rising is that it means more young people are continuing to enter the market, and that much of the continuous increase of rent is driven by employment. Vacancy tends to increase with joblessness and as it has always been, housing follows jobs. As a result, we will be watching the employment numbers as they roll in.

Denver’s Hot Apartment Market

Monday, August 12th, 2013

Five main factors are fueling the hot apartment market in Denver:

1. Metro Denver’s population has been growing by about 20,000 people per year and is pushing 3 million.
2. Home ownership rates are at 61 percent, just below the national average of 63.9 percent.
3. The area has experienced a record-low level of available single-family homes and condos for sale (9,187 in July, according to Metrolist).
4. Annually, 33,622 high school graduates reach rental age in metro Denver.
5. Denver added 52,200 jobs in the last year.

Recent U.S. Census data shows Colorado leading the nation in Generation Y immigration (demographic ages 25-34), who are attracted by Colorado’s continuing efforts to become one of the healthiest states in the nation.

The Daily Beast, the online home of Newsweek magazine with over 18 million unique visitors each month, recently included Denver among a select group of cities — including Seattle and Boston — where “high-tech and professional service growth has created enough wealth to offset higher costs while offering the next generation the chance to live in a culturally vibrant place where affording a home and raising a family are still possible.”