Entering into the final month of 2018, the team at Grace Property Management wanted to provide our owners with a quick update of the Denver rental housing market. 2018 has been an interesting year — common perceptions about the Denver rental market and what statistics show aren’t quite aligned.
Looking at the national rent trends from September 2017 to September 2018, there was a 1% rent increase on average. This means that a property renting for $1,000 in 2017 is likely renting for $1,010 today. In Denver, the rental increase amount is even lower, only rising 0.1%. That’s an increase of only $1. And in Aurora, rents are actually down 0.8%.
You’re probably wondering how this is possible in what is thought to be such a hot rental market. Why are rents down? The answer is simple: supply and demand. There is so much new construction occurring in Denver that rental rates are actually being pushed down, even with the influx in residents. For the first time in a long time, we are seeing move-in specials to entice new potential tenants.
Looking out at the Denver skyline, you will see a myriad of cranes. New multifamily Class A buildings are being constructed at an alarming rate.
Beyond the Denver metro area, cities that experienced the highest rental increases in 2018 include Brighton (4.3% increase), Broomfield (3.2% increase), and Thornton (2.6% increase).
So, what does this mean for landlords and rental property owners? Chances are, your rents are staying relatively flat, or even decreasing, but your taxes, insurance, and HOA costs have probably gone up. In 2019, this trend is likely to continue.
If you have questions about owning or effective operating Denver rental property or want to know what this means for your portfolio, give our team a call! We are happy to do a free analysis on your property and provide you with neighborhood and rental trends. Let us help you as we step into 2019. 303-255-1990