As the country continues to slug through 1.7 percent growth, the trend is not enough to lower the unemployment rate, which was 8.3 percent in July. The unemployment rate will stay above 8 percent for the rest of this year, which is not good news for the Obama administration, and may give Romney an edge.
In Denver, the combined vacancy rate for metro areas was down to 4.9 percent. The plunging vacancy rates and higher rent, especially along the northern Front Range, offer some hope that apartment construction will pick up and aid the economic recovery, but it is hard to say at this point.
We’re not seeing much new construction for rental apartments, although Colorado still is attracting new residents, and they still need somewhere to live, prior to purchasing a home.
Not all new-comers to Colorado see a owning a home as the American dream. This is confirmed in an article by Pat Ferrier of the Coloradoan, who quotes a new chic, “Being tethered down by a house, mortgage payment and non-appreciating asset is not considered to be as smart anymore. As smart becomes more fashionable, living in an apartment becomes more fashionable.”
Although this might be a trendy topic for some, and home purchase rates are at a 15-year low, we still believe in the white picket fence. Eventually ownership will go up again as rental apartment and rental home prices rise and availability shrinks.
- Low apartment vacancy rates feeling pressure after wildfires (denverpost.com)
- Colorado apartment hunters squeezed between low vacancies, high rents (denverpost.com)
- To Rent or to Buy; That is the Question (cashnetusa.com)
- Apartment rents rise at highest rate since 2007: Reis (news.yahoo.com)
- Apartment rents rise at highest rate since 2007: Reis (thehimalayantimes.com)
- Can the middle class thrive without home ownership? (finance.fortune.cnn.com)
- Apartment Guide (answers.com)
- Rents soar as number of Colorado apartment vacancies decline (denverpost.com)
- Travelers Heading to the Colorado Educator Effectiveness Summit Choosing Colorado Vacation Rentals for Accommodations (prweb.com)
- Movin’ On Up: Cost of Rent for Apartments Rising (prweb.com)