Denver Rental Management announced that the home rental prices in Denver has cooled since early September. The slow rental growth is expected and poses no threat. The 14.% increase in apartment construction has contributed to this slowdown. Real estate developers have been busy constructing new apartments in Denver from January until September of this year.The increased housing supply impeded home rental appreciation. There are 158,000 apartments units that are being built , the highest Denver has seen in over 30 years.
Despite the slow growth in home rental prices, rent appreciation still outgrowth wage increase all over America. The average hourly has only risen by 2.2% since last year. A large portion of a renter’s income goes to rent. Increasing home values and rent rates and slow wage growth has forced a lot of people to economize and change their lifestyle.
Rental growth has also slowed in oil and natural gas industry laden places like Houston, Dallas and Tulsa. Meanwhile the rent still remains high in technology centered San Francisco. The only reported metro area that has a faster price compared to the rest is New York. Renters on a tight budget found cheaper home rentals since September in Detroit, San Diego, Philadelphia and other American cities.