Since 2010 national rents have, on the whole, continued to steadily increase. This trend didn’t change in 2018 and we saw a year-over-year increase of 3.1% from December 2017 to December 2018 according to CoreLogic.
The Denver area was above this pace. According to Rent Jungle, rents in the area increased by 4.18% year-over-year. In Denver proper, the average rent for a 2 bedroom apartment is $1,649. These ongoing increases are good news for property owners and landlords.
Additionally, we’re seeing a continued decrease in homeownership through the Denver area. According to the Colorado Real Estate Journal, increasing student loan debt has created a drop in the rate of homeownership in Colorado, from 69% in 2008 to 63.7% in 2018.
These trends are also due to the continued increase in home prices throughout the Denver area. In 2018, the median home price in Denver was $440,919, a 9.7% annual appreciate rate according to MLS.
When you bring in the standard debt ratio needed to get approved for a mortgage, it’s easy to see why homeownership continues to decrease.
With these numbers in mind, it’s easy to see the value in rental properties. Rental rates continue to increase as does the demand for available units. As a property owner, it’s important to focus on marketing your property to get the attention of the current population of renters.
That’s where property management comes in. Not only do we help set the right rental price, we have the tools to market your property and keep your units filled without extra work on your end. Now is the time to make the most of your rental with property management. Get in touch today to learn how we can help.