As an architect I need to keep tabs on the real estate markets in the areas I tend to work. My most recent posts have been about the rise in living costs and home prices in the Denver area. Not to mention the rest of Colorado. So there was no surprise when I read in the Denver Post – Rent Rising in Colorado.
Home owners and buyers are not getting any relief. Neither are renters. Rent rising is across the board, with Denver experiencing a 3.9% increase over the past year according to Apartment List. And that’s even with the all of the new apartment construction Denver is seeing. The increase in rent from April to May this year is 1.5% alone.
Rent rising – The Problem
The Denver area median rent for a 2 bedroom 2 bath unit is nearly $1800. A 1 bedroom / bath unit is nearly $1400. With the news that Denver is one of the best places to live, those prices won’t decrease anytime soon. And we simply aren’t building fast enough to provide for the amount of people moving to the Denver area. What to do.
Rent Rising – The Solution
For many, a movie to Denver might be a short-term situation. Of course, once you get a taste of the Colorado air, leaving is going to be a bigger deal. But the reality here is renting might be the best option.
For those who are renting, but are here for the long-term, you should be considering purchasing or building your own home. If you can, it makes more sense to pay the money to a mortgage than to rent.
As I have mentioned in my previous posts, home prices have also risen. However, owning your own home means you will benefit from the rapid appreciation. The result is you own your own home and gain equity. The investment is well worth it.
I’m interested in your experience as a renter or first-time home buyer. Are you having difficulty finding a place? How much is too much to pay for rent?