Rental Investments – Real Estate in Colorado Springs
Of the metropolitan areas in the United States, Colorado Springs manages to stand out again and again. This time we are talking about rental real estate in Colorado Springs.
“Colorado Springs experienced the fifth “biggest rise” in apartment rental prices of U.S. metros last month.” Wisconsin-based real estate startup Abodo.com published its National Apartment Report verifying the information. In his article, “Report: Springs places 5th for rising rents,” Cameron Moix of the Daily News (10/18/16) notes several reasons for the enthusiastic Colorado Springs rental market.
For one bedroom apartments, average rents in Colorado Springs increased from $868 to $908 this fall. This represents over 4.6 percent increase year over year. For perspective, rents in Denver increased 2 percent to approximately $1350. Rents are also up for larger apartments, condos, and single family homes in The Springs. And we have been experiencing increases for many years.
There are several reasons for the increasing demand for rentals.
- Millennials opt to rent for longer periods than previous generations.
- Inventory of affordable homes remains low.
- Move up buyers have not recovered from the 2009 housing crisis.
- More baby boomers are downsizing to rent closer to town.
- Job growth and new employees.
- A mobile culture.
- Smaller nuclear families.
Homeownership rates are lower than they have been in a long time. Until buying homes becomes inviting, property owners will continue to raise rates as much as the market can absorb.
Invest in the cache of older homes in Colorado Springs, maybe get a fixer upper. Then pay down the mortgage and gain equity over time. Interest rates are still stubbornly low. This could be the time to pick up an investment property or two. To begin, try a couple of older condos.
Other Cities in Top 10 for Rising Rental Rates
Miami (9 percent)
Virginia Beach (7 percent)
Milwaukee (7 percent)
Minneapolis (6 percent).
Oakland (5 percent)
Fresno (4 percent)
Charlotte (2 percent)
Fairfax (2 percent)
For more information about Colorado Springs homes and condos in El Paso County, please contact top REMAX Realtor Ann Heiring at (719) 440-1010 or Toll Free at (800) 246-8978.
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