According to Apartment List, there was a .2% decrease in rent prices for 2 bedroom units from September to October 2018. The good news is that even with the drop in prices, rents have still risen 1.2% since the same time last year. As a real estate investor, you’ve invested in the right market.
Interestingly, the Denver Metro area has seen a unique shift and we are seeing prices rising faster in suburban markets than in urban markets. In the Metro Area we saw the biggest rent growth is in Broomfield, coming in with an increase of 4.8%. In Broomfield this means that the average 2 bedroom unit rents for $1,730 a month.
Two bedroom units in Denver proper average $1,350. And it’s not just Broomfield that’s outpricing Denver. We are seeing high rents throughout many of the area suburbs including Thornton, Brighton and Arvada.
It’s no surprise really. With the prevalence of work-from-home job options and the offer of larger lots and easier access to the mountains, moving outside of the city center isn’t that much of a stressor.
So what does this new data mean for you as an investor?
First off, don’t let a small dip in prices worry you. As you’ve seen, year-over-year increases are still substantial and little monthly dips are waves you just need to ride.
Secondly, it’s time to start investing outside of Denver proper. Suburbs like Broomfield, Thornton and Arvada are booming and rents are increasing. If you don’t already own property there, now’s the time to take action.
If you’re feeling overwhelmed trying to keep up with market trends, it may be time to bring a property manager. We keep up with market trends, rent changes and do the work of keeping your units occupied.
Get in touch with us today to learn how a property manager can change your business.