Rental supply is not increasing
Rental demand is slowing
Rental rates may decline
This is an ongoing question for both the Denver rental market and the entire Colorado market. As rents have continued to accelerate over the past years, 2023 has brought more questions about what will happen next. There are a few indicators that will help us figure out what we expect to see this upcoming year.
4 Main Factors:
Inflation is pushing everything higher:
From food to gas to rent - inflation has been increasing the cost of everything. These increased costs have also increased the costs of owning rental property.
The real estate sales market is slowing dramatically:
Buyer demand for homes is declining. This is partially due to increasing interest rates and also current owners who decide NOT to sell because they don’t want to give up their record low-interest rate.
Rental inventory will increase:
As economic conditions have changed, there will be an increase in the number of rental properties on the market. These will be homes ready to live in that are unable to be sold.
Rental demand will decrease:
The demand for rentals will slow down, due to the economic situation in Colorado. A few outlets for these renters are moving in with family members, finding a roommate, etc.
We believe that rental rates will stabilize and may even drop. The increased supply of homes for rents and the decreased demand will stabilize Colorado rental rates.
If you are considering selling vs renting your home, visit our rent vs sell calculator.
Grace Property Management & Real Estate
Serving real estate investors & residents since 1978