Rent vs Buy in Denver>Question Details

Gneiss Troy, Home Buyer in Denver, CO

What is your prediction on Denver apt rental rate for 2014?

Asked by Gneiss Troy, Denver, CO Mon Oct 28, 2013

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I Hope the rental market will start leveling out a bit. Now that we have a larger inventory of resale houses to choose from hopefully there will be more purchases and less elevated rental rates. Call me if you are interested in buying or selling!
2 votes Thank Flag Link Mon Oct 28, 2013
I predict that the trend of increasing rents will continue as the housing market continues to improve. Many suburbanites are now relocating to the city and with Denver booming it is a choice location!
1 vote Thank Flag Link Wed Nov 6, 2013

If you are referring to the amount paid for rent, I predict them to continue to go up. The last I saw was an 8.0% jump year over year on the average. the reason is manifold. 1st - the shortage of inventory homes to buy. 2nd - the unstable job market. 3rd - still a lot of people who were foreclosed upon and others that filed bankruptcy. 4th All of this produces a supply and demand issue to keep the rents going upward.

Robert McGuire
Your Castle Real Estate
1 vote Thank Flag Link Sat Nov 2, 2013
it depends on the area but I predict a slight rise in rents, somewhere around 10%.
1 vote Thank Flag Link Tue Oct 29, 2013
Apartment rental rates for 2014 will continue on their upward trend. Our economy is moving forward, but the jobs market is still struggling. With interest rates still incredibly low, this is the time to invest in the purchase of your home.
Flag Thu Oct 31, 2013
Predictions are very difficult, especially about the future.
1 vote Thank Flag Link Tue Oct 29, 2013
I anticipate that the market wil continue to increase over the next few years. So many people lost their homes during the financial crisis and they are not able to buy homes yet in most cases.
1 vote Thank Flag Link Mon Oct 28, 2013
All valid, good answers. Like in the sales market there are pockets of the market that will be hotter than others and some not as hot. Best (lowest) rents can and will be found in northern and northeastern suburbs.
1 vote Thank Flag Link Mon Oct 28, 2013
All is driven by Supply & Demand as mentioned below. There are almost 300,000 apartment units in the Denver Metro area. Last year, 2012, there were 1,900 units brought to market. This year (2013) it is expected that 4,600 units will be brought to the market and over 7,000 units in 2014. Supply is being brought to the market and that will tamper rents. However, there is currently still quite a bit of demand and rents will continue to rise in conjunction with that until some of these new units are brought to market. This pending increase in supply should level out rents and I expect them to stabilize sometime during next year, but at a point higher than today.
1 vote Thank Flag Link Mon Oct 28, 2013
Mike: The Denver Apartment Association Quarterly Report.
Gneiss: The jump is from surging Demand (many reasons for this) and what has been flat supply. The market is responding to that demand by bringing on supply. Constructing an apartment building is a 2-3 year cycle from sourcing land to having units ready for occupancy.
Flag Tue Oct 29, 2013
Jon, would it be possible to add a reference or references to the data you have provided? Thanks in advance!
Flag Mon Oct 28, 2013
About 5 to 6 years, the rent was actually going down in Denver. I know because I paid less rent in 2007 than in 2006. Why the jump in the past 3 years or so?
Flag Mon Oct 28, 2013
Based on everything I've read, Denver metro area rates will continue to increase through 2014. They increased a little over 6% during Q2 of 2013, resulting in Denver having the third highest rental rate increase in the US for Q2. Rate increases may not increase at the same rate, but they are likely to increase.
1 vote Thank Flag Link Mon Oct 28, 2013
Theoretically, yes. But it could take years to get inventory levels up to a point where they meet with demand levels. Keep in mind, demand is increasing right now and we're already behind in the curve. We'll be playing catch-up for awhile.
Flag Tue Oct 29, 2013
What about the increase in construction - could they not make up for the demand stabilizing prices?
Flag Mon Oct 28, 2013
It's all about supply and demand. If the shortage continues, the rents are going to continue to go up.
1 vote Thank Flag Link Mon Oct 28, 2013
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