Is Now A Good Time to Rent?

Posted by West + Main Homes on Tuesday, June 6th, 2017 at 10:49am.

People often ask if now is a good time to buy a home, or if they should look for a new rental when their lease expires and inevitably increases. The answer is sort of frustrating, because with inventory so tight, both homes for sale and for rent are hard to find in Central Colorado. But, really, it all depends on your short and long term plans, as well as your Real Estate and other investment goals.

The Census Bureau recently released their 2017 first quarter median rent numbers. Here is a graph showing rent increases from 1988 until today:

In the first quarter of 2017, the median asking rent for vacant for-rent units across the United States was $864. 

According to Rent Jungle, that number is almost double in Denver:

As of April 2017, average apartment rent within the city of of Denver, CO is $1564. 
One bedroom apartments in Denver rent for $1380 a month on average and two bedroom apartment rents average $1765. 

See Rent Jungle's listings of Denver Apartments.

"The first quarter 2017 rental vacancy rate was the highest outside Metropolitan Statistical Areas (8.7 percent). The rates inside principal cities (7.0 percent) and in the suburbs (6.5 percent) were not statistically different from each other. The rental vacancy rates outside Metropolitan Statistical Areas, inside principal cities, and in the suburbs were not statistically different from the first quarter 2016 rates."

In the first quarter 2017 the West (4.7 percent), had the lowest vacancy rates of all the U.S. regions.

As it is expensive to rent currently, the best time to look for options to rent are from May to September. This is when people are graduating from college and moving to their new jobs, younger school children are out on summer break, and the warmer weather is preferable for families to move in.  At this time there is more turnover of rental properties and availability of units. On the other hand, the only problem you may come across is that there may be more people competing for those prime rental locations.

Now, if you are looking to save money look for rentals from October to April -- this is the off-season. Around this time of year, apartment turnover is slower, so there will be a limited selection of rentals; however, landowners might be willing to drop their price in order to fill their vacancies.   

Just remember that it is best to look for rentals in areas that have more supply than demand, so looking for newer apartment developments as they are most likely to have more availability may be a good option. 

Thank you to KeepingCurrentMatters.comRent.com and Census.gov for compiling all the information to help you find the best time to rent!

Whether you are looking to buy or to rent, we are here to help. Just Contact Us!

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