The University of Denver's Gordon Van Stroh recently released his 3rd Qtr report on Denver Metro's 1-4 Unit Residential Income Properties. Below is some very interesting data that I wanted to share with the Trulia community and prospective real estate investors in Denver.
For the 3rd Quarter 2010, Average Vacancy for the metro Denver area fell to an incredibly low 2.9%. A healthy market is considered to fall in the realm of 5-10%. That is down from 3.8% in the 2nd Quarter of 2010 and down from 4.6% in the 3rd Quarter of 2009.
Not surprisingly due to the demand in the market creating the low vacancy, average rents responded and increased to $1,041.05 per unit in the 3rd Quarter 2010. That is up from $1,027.78 in the 2nd Quarter of 2010.
What does this mean? It means now is the time to buy residential income property in Denver. Couple that with the low interest rates in today's market place and you have a golden opportunity to lock in low expenses for a 5-10 year hold. AND if you believe inflation is just around the corner, this is even a greater opportunity. Lock in a low rate and fixed cost now, and ride the inflation wave to come with increaing rents that will even more greatly impact your rental property profits.
Here are some detailed statistics by Country for the 3rd Quarter 2010 for 1-4 Unit Residential Income Properties:
3rd Quarter 2010 Average Vacancy by County:
Adams - 3.4%
Arapahoe - 3.1%
Boulder/Broomfield - 1.4%
Denver - 3.2%
Douglas - 5.2%
Jefferson - 1.8%
3rd Quarter 2010 Average Rental Rate by County:
Adams - $1,121.34
Arapahoe - $1,015.71
Boulder/Broomfield - $1,635.90
Denver - $969.37
Douglas - $1,404.44
Jefferson - $981.09
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