denver metro real estate

In recent months, the Metro Denver area has seen vacancy rates increase and a decrease in rental rates. Based on information pulled from the publication from the organization known as the Apartment Association of Metro Denver, property managers and landlords are currently facing issues when it comes to filling the units they sublet.

Mr. Mark Williams from the organization has stated that less-than-favorable rates are stemming from an overabundance in supply and a reduction in demand. Several new apartments have recently been added to the area.

As a result, the rental rates are quickly dwindling. The good news is; the decreases are not highly significant. In fact, the average drop was identified as only being about $7.00.

This means that, though vacancies have increased, the average rental still sublets at just under $1,300.00 a month.

The fourth quarter of 2015 experienced weakening that was a bit higher than the standard seasonal weakening that commonly occurs. This was confirmed by a professor at the University of Denver that specializes in real estate, Ron Throupe. In fact, the vacancy rate was at its highest around the end of the year since the rental rate drop that occurred in the years of 2008 and 2009 – when job losses were at their highest due to the drop in the housing market.

The following outlines the percentages of vacancy rates at the end of 2015:

  • In the northwest area of Denver, the rate rose to a whopping 17.4%
  • In Boulder County, the rates came in at 14%
  • In the Downtown Denver area, vacancy rates soared at 11.2%
  • In the north area of Douglas County, the rates climbed to 9.6%

Now that we are over halfway through 2016, it is a known fact that the vacancy rates have experienced a slow rate of growth; however, more and more individuals are starting to have a desire to rent in the Metro Denver region.

Nearly 2,000 brand new units were added to the rental market within the region. So far, the absorption of these units has been negative; however, once people realize just how much rental property is available in the region, the absorption is sure to transform into a positive for property managers and landlords.

In evaluating the overall Metro Denver area, you will quickly discover many perks for potential tenants. For example, the job market is considered to be extremely robust.

This market is resulting in an extremely strong level of population growth.

Each day, the real estate market is continuing to see that vacancies are dwindling. As vacancies start to decline, the rental rates may – once again – increase.

While it is true that there has been a bit of a downturn in the rental industry, it is starting to come back around.

If you are a property manager and/or landlord, you should remain hopeful. Thousands of jobs are being added to the Metro area on a continual basis and this is resulting in an influx of new residents.

If you would like to learn more about the real estate market, call us today at

720-839-7482

 

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