The Denver Rental Market
According to the most recent Census estimates, there are 299,938 total housing units within Denver. Of this number, there are roughly 18,000 vacant houses for rent in Denver.
Zumper released their Sept 2018 data and they show the average rental rates in Denver and the surrounding cities is around $1,500 per month.
The fastest growing cities within the Denver Metro area as it relates to rental price increase is Centennial, with a 14.9% YoY increase for a 1 bedroom and a 10.7% increase in rent for a 2 bedroom.
More People Moving Out of Denver
There are more and more people moving out of Denver than are moving in. A recent Redfin Survey showed that 23 percent of those surveyed said they are looking at homes outside of the Denver area, up from 18% who said they were looking to move out last year.
“When our prices are going up at an average of 10 percent a year for single-family homes, we find that our wages aren’t keeping up and people have no choice but to move farther out and commute,” said Kelly Moye, a spokesperson with the Colorado Association of Realtors.
For those looking to move out of Denver but stay in the State, a majority of them are looking at Colorado Springs. For those looking to move out of the State, Seattle is their #1 choice.
“With home prices reaching new heights in many metro areas, it’s no surprise people are continuing to move away from expensive metros in search of homeownership,” said Taylor Marr, Redfin senior economist. “Last year’s tax reform poured fuel on the fire. By capping mortgage interest and state and local tax deductions, there is an even greater incentive for homebuyers to consider moving to a lower-tax state.”
In general, while the Denver real estate market may be slowing a bit, it is still forecasted to appreciate 6% next year. The delinquent rate on mortgages is low at .5% and homes with negative equity is around 6%.
