A survey shows that the average apartment rent rate in Denver for the end of the first quarter of 2015 has increased. The average rent totaled to $1,203.89, this is 12% higher compared to the first quarter of 2014 and 3% higher compared to the last quarter of 2014.
Based on calculations, the average rent rate covers the principal and the interest payment of a home mortgage worth $260,000 amortized over 3 decades with an interest rate of 3.75%. The more expensive rentals, those apartment units built after 2010 is worth a $355,000 mortgage.
According to S. Robert August a local housing consultant, people who plan to stay in Denver long term should buy a home instead of renting. He also cited that rentals do not have tax breaks like mortgages do. August says that people who are renting should seriously consider purchasing homes as home prices continue to rise.
In a rent rate comparison among 13 major cities in the United States, Denver ranked 9th. Based on the report; Denver is in the middle of the list for now. However, more and more people are moving into the state because of jobs that pay well. This causes an increase in the demand for housing resulting in higher rent rates.
To meet the demand more apartments are being built. This creates a healthy competition among new and existing apartments. Property management companies such as Denver property management rentals expect higher occupancies.
Vivian Markham of the Silva-Markham Partners noted that the market constantly changes and it is imperative that management companies must remain diligent and creative to satisfy a client’s needs.