The large number of Denver foreclosures that hit the market over the last few years meant more than just downward pressure on home prices for a few years. It also meant that people who owned a home needed a place to live, and with a foreclosure on their credit report, renting was the only option. This has lead to an incredibly low vacancy rate and a huge opportunity for buyers interested in Denver Investment Properties.
In fact, according to a report in the Denver Business journal, vacancy rates are at a 12 year low. This is causing rates to skyrocket across the metro area and investors are cashing in.
Of course, buying Denver Investment Property requires a sizable down payment (typically 20%) as well as a solid financial history. But for those who do qualify, finding distressed Denver homes and buying them as rentals is one of the best investments you can make.
From the Denver Business Journal:
The vacancy rate for metro Denver apartments stood at 4.3 percent in the third quarter, the lowest vacancy rate recorded since the same quarter in 2000, according to the report, which was also released by the Colorado Division of Housing. That vacancy rate stood at 4.8 percent for the second quarter and 4.9 percent for the same quarter in 2011. Except for Douglas County, every county saw average vacancy rate decreases.
“Considering that we were already under 5 percent vacancy, this additional drop is significant,” Ron Throupe, professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management and author of the report, said in a statement. “Rent growth hit an 11-year high during the second quarter, but there is still enough demand out there to keep filling up units.”
Those rents climbed to an average of $986, up 5.2 percent year over year. Every metro Denver county included in the survey saw rent increases, with the exception of Adams. The biggest rent gain average came in Boulder/Broomfield, which climbed 8.1 percent in one year. Although Boulder and Broomfield are separate counties, they are combined in the report.
Yes, you read that correctly: rental rates are increasing at a rate of 5.2% year over year.
If you are interested in learning more about buying Denver investment properties or learning how to find Denver Distressed Properties (Denver foreclosures and Denver short sales) call our team at 303-726-1874 today.