If you specialize in real estate or own property, it is important to understand that the demand for affordable housing is exceptionally high in Denver.
According to a recent study, there are thousands of people in Denver that don’t have access to something most of us take for granted – a “home”.
It’s true that Denver has one of the absolute strongest economies within the country. Despite this fact, thousands are sitting on the brink of losing their current home because of the increase in rents and the prices of homes.
If you’re a real estate investor, real estate agent, or own some property in Denver, you may want to consider placing your focus on providing affordable housing to those that need it. In many instances, it’s better to provide housing at a lower rate than at a higher rate. Bending a little will allow more people will choose your affordable housing – resulting in higher profits, over time.
Housing Numbers in Denver
According to the numbers, the housing prices have risen at least twice the national average. Since the year 2011, rent has increased in Denver at least 50%. Also, based on statistics, there has been a very high surge of new residents to the area. This has averaged about 1,000 people each and every single month.
These figures show that affordable housing is a dire need in Denver. Unfortunately, the federal funding that Denver receives for affordable housing has dropped by at least 1/3 since the year 2010.
When you put all of this together, you can clearly see that the number one priority in Denver IS affordable housing. As a property owner, looking to rent your property, this is an area that you should focus on – starting now.
In an effort to keep Denver accessible to all income levels and to ensure that housing is affordable, several people have come together to make a proposal to the Safety Committee of the City of Denver. The goal of the proposal is to create a permanent and completely dedicated fund designated for affordable housing. The plan calls for the act of generating about $150 million over the course of a decade to produce and to appropriately preserve about 6,000 affordable housing units – including apartments, condos, and homes.
While this plan is likely to be approved in the future, people are in need of affordable housing now.
What You Can Do To Provide Affordable Housing
Consider making your rent more affordable to those that require the assistance to obtain safe housing for their family. For example, if you have an apartment complex where you charge high rent, you may want to consider reducing the costs of your upper-level apartments. This may result in an initial financial loss, but, over time, you will find that you make more money because the tenants are able to afford those upper-level apartments.
There are many ways you may reduce rents. No one in the market really wants to do that; however, by having high rental fees, you are more likely to suffer loss as people continue to experience financial hardships.