Denise Wambsganss
Realtor Your Castle Real Estate
303-880-8771
dwambs@msn.com







Thursday, September 16, 2010

Rental Vacancy Rate in Metro Denver

Vacancy Rates are at all-time lows !

Vacancy Rates in Metro Denver for 1-4 unit properties
2004 = 13.1%
2005 = 9.5%
2006 = 7.1%
2007 = 4.0%
2008 = 4.2%
2009 = 5.2%
2010 = 3.8%
• At the same time we are experiencing a very strong landlord’s market
• Vacancies are near all-time low’s, currently at 3.8% vacancy for 1-4 unit housing. Single family homes are the easiest to rent and, while not measured specifically, are certainly below the 3.8% vacancy mark
• Bottom line: it’s a great time to be a landlord. Units are full and landlords have the upper hand with tenants.
• Rents are also increasing
Why are vacancies so low?
High occupancy in the rental-housing market is being driven by economic concerns such as job security:
- Many consumers feel it’s less risky to rent a home than buy one
- There are large impediments to buying new homes, even if a consumer wants to
Notion of home buying has changed
Less ability/desire to buy homes = more tenants
What about Loans?
Single family:

- Need 20% down
- 5% on 30 year fixed
2-4 units:

- Need 25% down
- 5% on 30 year fixed
3-4 units:

Need 25% down
- 5.25% on 30 year fixed
Great time to own a Rental property because:
- It is relatively easy to qualify for a loan for a rental property
- Basic requirements: 20% down, a job, 680 FICO, no major hits on the credit score
- Rates are at all-time lows. It can’t really get better than this !
EXAMPLE:
$122,000 property
20% down = $100,000 loan
5% interest on 30 year loan
Principle & Interest = $537
Taxes & Insurance = ~$160
PITI = $700
CASH FLOW
There are NO NEW APARTMENTS COMING ONLINE AND We are still seeing record low permits pulled for multi-family projects. Great time to own a rental Property.
To brainstorm about the Metro Denver Real Estate Market contact Denise Wambsganss - Realtor with Your Castle Real Estate 303-880-8771 or email dwambs@msn.com

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