Neighborhood Inscope

Good News For Denver Home Buyers Looking to Wait While the Bubble Burst, Rents Growth Are Slowing

By Dr Denver H. Bubble

Fri Jun 29 2018

Denver's homebuyers have been facing a very tough buying market for the past few years. But there is some relief if those potential homebuyers are looking to wait for prices to drop and continue to rent. Annual rent growth rates in Denver have been trending downward for the past few years. Although rent growth has slowed, it is still increasing, just at a slower pace. Of the 25 largest cities in the country, Denver currently ranks #10 for year-over-year rent growth at 1.4%. For comparison, Denver ranked #17 in 2017, #10 in 2016 and #2 in 2015. In 2015, the rent growth rate was 7.3%. This is quite a benefit for renters

According to https://www.apartmentlist.com/, this slowdown in rent growth is due to an increasing supply of new rental inventory in the market. While new single-family home construction continues to lag which has been forcing up home prices, spending on construction of new multi-family housing, which is mostly rental properties, is near its pre-recession level. At the same time, despite a lack of for-sale inventory, the homeownership rate has begun to increase for the first time since the Great Recession, leading to a decline in the number of renter households. For more details, please see the article here, https://www.apartmentlist.com/rentonomics/rents-growing-fastest/

Image Source: https://www.apartmentlist.com/