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.
For 2015, rent is expected to rise even faster than home values. 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.
Moreover, this could be the perfect time for you to consider purchasing an investment property. Contact Jon Terry at 303-907-7668 or Jon@AlarisProperties.com to discuss this topic. He will be happy to answer your questions and guide you through this process.
Want to find out about our deep investment in this unique city? Meet the Alaris Team.