What Rising Property Values Means for Renters in Denver
The last housing price peak in metro Denver was in 2006. Following the housing crisis of 2008 and the huge increases in population the metro Denver area has seen in recent years, housing values have increased dramatically. They are now almost 50% higher than they were in 2006, according to a study by HSH.com. It has been a long time coming for homeowners in Denver who saw their home prices drop during the mortgage crisis of 2008. The value of their homes has recovered and then some in the area in recent years. But what does this mean for renters looking for apartments in Denver, CO? For one, it means that if you’re trying to save up for a down payment for a house, renting a little longer may be worth it with rental rates for many apartments for rent in Denver, CO leveling off.
Since 1991, when the Federal Housing Authority started keeping these records, Denver’s housing appreciation has quadrupled. No city in the country, not even the notorious San Francisco market, has seen as much value appreciation as Denver has since 1991. If you’re a property owner in Denver right now and you’re trying to sell, the time hasn’t been better in recent decades. However, if you’re trying to buy a house in the Denver area, you’re paying much more than you would only six years ago. Especially if you’re trying to buy your first home, purchasing a Denver property will likely cause you to put down a higher down payment or cause you to pay higher monthly rates on a mortgage. With many new apartments in downtown Denver being built, finding one is the easiest it’s been in recent years. Living in one of the many new apartments for rent in Denver, CO may be the safer way to go for now.
In May, the median price of a house in metro Denver was $400,000. A decade ago, the deluge of mortgages and rising home prices created a high demand for homes in the area. In 2006, there were over 30,000 listings of available homes in Denver. Everyone was looking for a new place to live here. Today, the demand has lessened. There were only over 5,000 home listings in Denver. As new developments go in to accommodate more people moving to Denver, the rental market has become much looser for those looking for rental properties, especially for downtown Denver apartments. More residents looking for apartments for rent in Denver, CO have taken advantage of the many opportunities for work in the Denver metro area.
With the many changes in the housing market overall in the city over the last several years, Denver still remains a popular place to live. Housing numbers and value appreciation in the city will continue to normalize as long as the job market remains advantageous for newcomers to the city. And as long as demand for living space remains high, as it is expected to, rates for apartments for rent in Denver, CO won’t get much higher than they are now.