We’ve heard it all year; rents rising! But with all the talk of rising rents, many have said it was coming, that it was just a matter of time, and it looks like rents have finally started to drop across the country and specifically in hotter markets like Denver. Across the country, landlords have started to cut their prices, acknowledging the fact that renters just aren’t willing to or financially able to pay such high prices anymore. And it’s not just concessions we’re talking about here, like “one month free” or some other special offer, but actual price drops.
Tis The Season, Isn’t It?
You can’t deny that the time of the year influences price points. Typically, we see rents rising in the summer when there’s a plethora of people looking to move and to settle in before schools start the the cooler months hit. Landlords who missed the busy summer season have to work hard to get their properties rented during the slower fall/winter seasons, as there just aren’t as many people looking to move around the holiday season. This means constantly gauging the price of their rental to keep up with competitors, both new and old, and to attract renters’ attention. But according to an article in the Denver Post, the number of units that have reduced their asking price has increased by half a percentage point nationally from last year and by as much as 9% for a few other cities.
Denver itself has started to see rents fall. According to an article in the Denver Business Journal, prices for one bedroom apartments in particular have fallen 3.1%, and Denver is no longer in the ranking for the nation’s 20-most expensive markets. Over all, in the past three months, rents have fallen .06% in the Mile High City, beaten only by San Francisco’s 1% and Seattle’s 0.8%.
It really comes down to two things: too much supply at sky-high rates and not enough demand since most are priced out. Hoping to fill their vacancies left over from the summer, landlords have to come down to prices that renters are able to afford and willing to pay. It’s simple economics.
Don’t Worry, Dropping Doesn’t Mean Losing!
Rents are still at historically high rates according to the Denver Post, but don’t let that be an excuse for not lowering your price when the time comes.