Whether you entered the landlord gig by accident due to circumstances or as an intention investor, the last decade has been a huge win for those in the long-term rental game, especially here in Denver, Colorado. Between 2010 and the end of 2019, rents in Denver saw an 88.2% increase. Cue the confetti and party blowers!
Top Rent Increases
The data comes from a recent report from Zillow, which analyzed rent increases over the last ten years for 50 of the nation’s largest metro areas. Denver landed in the top three markets that had the largest rent increases between 2010 and 2019, behind Austin, Texas and Raleigh, North Carolina. On the other end of the scale, the markets that showed the smallest increases were Memphis, Tennessee, New Orleans, Lousiana, and Viginia Beach, Virginia.
Crunching the Numbers
Overall, renters spent a combined $4.5 trillion in rent across the U.S., with a little over $500 billion of that total paid in 2019. Denver’s decade total came in at $50.7 billion, with $6.3 billion of that paid in 2019 alone. Year over year, Denver’s rent rates increased by 3.4%, according to Zillow.
Looking to the Future
So the question stands: will this trend continue into the 2020s? Odds are rates will cap at some point and year-over-year increases have started to slow down. The housing market is a shifting one, after all. However, that doesn’t mean that owning a rental property will no longer be a good investment. Long term rentals have been and always will be needed. With the majority of the Millennial population, now currently considered the largest generation, choosing to rent rather than buy, demand isn’t likely going anywhere any time soon, especially when it comes to single-family home rentals.
As always, Real Property Management Colorado will stay on top of current trends and are ready to help with all of your property management needs! Give us a call at 303-873-RENT (7368) or online at www.303rent.com.