Corporate Housing Services | May 15, 2017
Anybody looking for rentals in the Denver metro area knows that prices are rising. This is mainly due to the skyrocketing demand. In a recent article by the Denver Post, we are told that builders have added a considerable number of apartment complex's but because they are higher-end apartments the average rental costs in Denver keeps going up.
"Many of the new apartment projects are luxury units concentrated in downtown and central Denver, where rents carry a premium. More new units, provided they get leased, can translate into higher average rents. noted Teo Nicolais, a Harvard Extension School instructor specializing in real estate.
Apartments built since 2010 in metro Denver command an average rent of $1,729 a month, while the rent on those built in the 1970s averages a much lower $1,079 a month.
“Adding 3,246 new apartments at that higher price point will, by itself, increase the metrowide average rent figure,” Nicolais said." (Denver Post)
So while builders are more inclined to develop higher end apartment complexes this does nothing to relieve the on going housing crunch that is occurring in the Denver metro area. An article in CBS Local gives us the reason why builders have been so reluctant to develop affordable housing options,
"Builders are stating that due to Homeowner associations and legal costs they are reluctant to build lower priced complexes. This has spurred a bill to help protect builders and encourage them to develop condominiums and apartments complexes that address the housing concerns.
Colorado’s Legislature has passed a measure to address pent-up demand for more housing by promoting condominium construction.
The Senate on Thursday unanimously passed the bill , which makes it harder for homeowners associations to sue builders over alleged faulty construction.
Developers blame skyrocketing insurance costs to defend such lawsuits for a dramatic slowdown in condo construction in Colorado." (CBS Local)
While this bill will give builders the added protection against legal and insurance issues it will still take multiple years before these solutions start to take effect. This will simply be an ongoing problem for the foreseeable future. Anyone looking to move into the Denver Metro area will have a hard time finding rentals in an affordable price range.
One solution is to utilize a property management company like Corporate Housing Solutions. Not only are they always looking to add inventory to their list of properties, they also know when and where the best properties will be coming available.