Rental properties in the Denver, Colorado area are in increasing demand. The reason for this is that more and more people are choosing to move to the Denver area for work. Denver Property Rental has grown significantly in recent years and statistics show that most people today prefer to rent an apartment or house rather than buy.
More and more people are choosing to be tenants rather than homeowners and many factors directly affect this trend. You could say that one reason for this happening is because housing prices have skyrocketed and many people can’t afford them.
The second reason why so many people avoid becoming homeowners is the student debt crisis in the country. These days the average student debt in the U.S. is $32.000. With this type of debt, some people are unable to afford a down payment for a house. It is understandable why so many prefer to live in rental homes.
But of course, this is only a trend, the market for rental properties is growing, but this doesn’t mean that the people have stopped buying houses. It just means that Denver’s rental market is strong, and statistics show a big increase in the Denver housing for rent market in 2020.
Now may not seem to be the right moment to buy a new property because of the coronavirus pandemic, but in February the average sale price for a home reached $554,054, and many people are continuing to buy right now.
The Denver property rental market is growing and if you have decided to invest, now is as good a time as any, because rental property is increasingly in demand right now. Denver has proven that it will give real estate investors the opportunity for a good return on their investment.
The population of the city has been increasing every year. More and more people are moving into the area, which is welcomed in the Denver real estate market. According to some rankings measuring the livability of the top 125 largest metro areas, Denver is in the top three.
College students are also in that group of newcomers who affect the needs for renting apartments, townhouses, houses, etc. There is a constant flow of people who come to Denver and they are looking for rental property—this is great for investors who are investing in the Denver property rental market.
The possibilities for housing or investing in Denver, Colorado rental properties are endless: you can buy a duplex, four-plex or multiplex property and rent out the different units. Becoming a landlord may be the best decision you ever make, the potential for return on your investment is very high. Hiring a seasoned property manager can make this entire process headache-free.
Housing Property in Denver
When choosing to invest in housing in Denver, Colorado rental properties you have to pick the right location. The location of the property is very significant for your tenants who may be looking for a family-friendly neighborhood. Knowing your tenant’s needs is going to help you choose the right housing property for them.
Those simple guidelines can be applied to every city not only for Denver. Some of the best areas to invest or live in Denver, Colorado are:
- Hilltop – The neighborhood is well known for its gorgeous green spaces, the most renowned is Cranmer Park. The average home sale price: $1,017,431.
- Congress Park – This neighborhood has one of the highest approval ratings in Denver. The average home sale price: $487,297.
- Hale – In this area, you can find different types of property from classic Denver bungalows to high-end condominiums. The average home sale price: $254,121.
- Cherry Creek – An alluring, family-friendly area. The average home sale price: $738,710.
- Virginia Village – Here you can find good schools, low crime rates and a family-friendly neighborhood. The average home sale price: $341,156.
- City Park – In this neighborhood, a big attraction is a huge park. Average home price: $418,249.
- Belcaro – Belcaro is where you can find one of the most expensive investment properties in Denver ,CO. It has mansions, new custom builds, and luxurious ranch-style homes. Average home price: $1,029,850.
- South Park Hill – In South Park Hill there are a lot of bars, restaurants, coffee shops, and parks. Many families and young professionals are choosing to live there. The average home sale price: $474,241.
- Sloan Lake – Sloan Park is home to the second largest park in Denver. New, modern townhomes are being built throughout the neighborhood. The average home sale price: $521,686.
- Indian Creek – This neighborhood is considered to be the safest place in Denver with the lowest crime rate in the area. The average home sale price: $252,052.
These are the best investment property areas in Denver. You have a good variety of neighborhoods to choose from or you can simply invest in all of the recommended areas that Denver, CO has to offer.
For those fortunate enough to have entered the market at the right time, and found value based on the location of their home, they could be sitting on a nice return. These returns can be maximized with low vacancy and proper management.
No one knows what will happen to the real estate housing market in the next few months. The coronavirus pandemic is spreading rapidly around the world and this will affect the way real estate investors think abou investing, not to mention, it will shift the psychology of the marketplace as a whole. We have to watch and see what will happen and how it will affect the housing market not only in Denver but in a global aspect, but within dips like this, there is always hidden opportunity to be found.