Over the course of the past couple of years, the growth of apartment rentals in the Denver Metro region has steadily grown; as a result, vacancy rates have decreased.
According to the latest figures, the vacancy rates are currently sitting at about 5.1%.
While considered to be at one of its lowest rates over the course of the past year, it is significantly higher than the vacancy rates that were evident in the years of both 2012 and 2013.
It was during that time that the growth of the population was consistently increasing; however, the housing choices were not as varied.
In real estate, a vacancy rate of at least 5% is often referred to as a rate that has “equilibrium”. It is actually an ideal rate because it does not indicate that the rental market is exceptionally tight, nor does it indicate that the market of the given area has too much supply.
A 5% vacancy rate is often indicative of a solid, growing job market, housing development, and only a mild to moderate demand for housing in that particular area.
In reviewing the studies done on the vacancy rate in Metro Denver, one of the main forces behind the numbers is the employment rate. Vacancy rates go hand-in-hand with the jobs that are available in a certain area.
While the past several years has seen complications with unemployment, that is swiftly declining. As it declines, vacancy rates are decreasing.
This is one of the main reasons why real estate owners should work on filling their units now.
Jobs in Denver Metro are at an all-time high. In fact, many people – particularly young people with families – are starting to flock to the area to take advantage of the opportunities that currently exist.
By placing your focus on creating housing or having apartment units available, you will be taking part in a movement that will result in an immense degree of financial success.
If you are a real estate investor, a property manager, specialize in tenant services, or engage in similar activities in the housing market, now is the time to advertise what you have to offer. This is especially true as tax season is upon us.