2020 was a rough year for many. Rental markets across the U.S. saw a sharp decline in growth. This economic uncertainty has left Colorado real estate investors and landlords wondering what 2021 will look like.
We’ve put together 5 of the top trends for 2021 in the Denver rental market to help you plan the year ahead.
- Increasing Rent Prices
- Good Demand For Rentals
- High Demand For Single Family Homes
- Growing Demand For Multi-Family Homes
- Healthy Economic growth
1. Will Rental Prices Go Down In 2021?
While the COVID-19 pandemic caused the average rent in 2020 to drop due to massive job loss and financial insecurity, the first quarter of 2021 has seen . In Denver, the average rent price for a one-bedroom apartment has increased approximately 2% per month.
This increase in rent indicates that the economy is recovering from the recent downturn, and rents are projected to continue to rise, reaching pre-pandemic levels in July.
2. Is There Demand For Rental Properties?
35% of searches for rentals in Denver are coming from locations outside the Denver metro area. This means that 1/3 of all rental searches are for people wanting to move to Denver, leading to increases in tenant retention and driving up average monthly rent.
3. Single Family Homes Offer More Space
because more people are working from home and wanting more space. Another factor in the increasing demand for larger homes is . The desire for larger homes with private outdoor space means 2021 is a great time to invest in property to rent as passive income.
4. Multi-Family Housing Offers More For Less
The first quarter of 2021 saw a large increase in household consolidation, with single adults and families moving to smaller, more cost-effective housing. Multi-family housing such as apartments, townhouses, and condominium communities often include amenities like gym and pool access or utilities included in their rent. This consolidation of costs makes multi-family housing cost-effective, convenient, and increasingly popular.
5. Will Rental Property Demand Last?
Even though much of the national economy is still dealing with the fallout from the COVID-19 pandemic and recession, job growth in Denver continues to rise. In August 2020, . In April 2021, , which is equal to the pre-pandemic February 2020 participation rate.
This continued growth means that the demand for homes to rent has great growth potential over the next year.
Do You Own Property In Denver & Want To Rent It?
Cobalt Creek Property Management is a Denver property management company. We are experts in market trends. Our professional rental managers provide attentive and responsible management services that protect your investment. Contact us today and let us keep your tenants happy and take the stressful landlord duties off your back.
