Several statistics are pointing to a significant improvement for the state of the rental market in Denver. At least for the Real Estate investor.
In late 2010, early 2011 the unemployment rate in Denver peaked at a twenty year high for the area near 10%. Today the unemployment rate has dropped back below 8%, back near the high rate seen back in 2004, just before the Real Estate bubble popped.
The average two bedroom rental price in Denver is at a five year high. In 2006, the average rental went for $872. Today, the average is near $1,000 at $975 a month and the trend does not look to be slowing down. This is being driven by a continuing decrease in the number of rental properties that are available. In 2005, the state of Colorado had a little more than 13% of its rental properties that were vacant. Today, that number is down to a rental vacancy rate of less that 8% statewide. And, the pressure continues downward which would continue to put pressure on the rise in the rental prices.
Here is the really good part for the real estate property investor. The housing price index for Denver continues to show a downward trend.
With rental vacancies going down, there are less homes available for rent in the area. With employment rates improving there will continue to be an upward pressure on the price of rental properties.
What a great time to be a real estate investor or property manager in Denver.