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Denver Investment Properties: Apartment Vacancy Rates Decline in Colorado Metro Areas; Rents Rise

Now is certainly a great time to consider Denver Investment properties. The latest market data is showing a continued decline in vacancies and the rental rates remain on their upward trend.

Much of this has to do with the higher than normal rate of Denver HUD homes and foreclosures over the past 4 years (although those numbers have recovered drastically in the last 6 months). When someone has a foreclosure on their credit, purchasing a new home is usually not an option for 3 years. This forces the previous homeowner into the rental pool. This simply increase in demand for rentals creates the pressure on the supply of rental homes and the resulting increase in those rents.

However, all of this creates a perfect opportunity for those with the desire, and ability, to purchase Denver investment properties. While the market for fix and flip Denver homes has become much tighter and the profit margins slimmer, investors willing to buy "fix and hold" homes are having great success.

Buying Denver foreclosures at discounted prices and then fixing these homes up for renters, can be a highly profitable business - especially with the increasing rental rates we're seeing. If you would like to talk more about this or learn more about Denver HUD homes and foreclosures, give our team a call at 303-726-1844.

From today's Denver Post:

 The vacancy rate in Colorado apartments was down during the fourth quarter of 2011, falling in five of the six metro areas measured from the fourth quarter of 2010 to the fourth quarter of 2011, the Colorado Division of Housing said today.

The combined vacancy rate for apartments in six metro areas across Colorado during 2011's fourth quarter was 5.6 percent.

The rate was down from 2010's fourth quarter rate of 5.8 percent.

The combined vacancy rate fell to the lowest fourth-quarter vacancy rate recorded since the survey began measuring the fourth quarter during 2007.



Read more: Apartment vacancy rates decline in Colorado metro areas; rents rise - The Denver Post http://www.denverpost.com/breakingnews/ci_20018133#ixzz1n8gQvPns
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0 commentsBrian Petrelli • February 22 2012 11:08AM
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