Renting continues to be a popular option for many in Colorado. Some cannot buy in the current market, with increasing home prices and high interest rates. Others prefer the flexible lifestyle and financial freedom renting provides. Either way, rental properties continued to be in high demand, which makes them an incredibly valuable asset to hold on to. And over the last few years, rental rates in Colorado have continued to climb higher each year, but just how much have they increased?
Rental Rates Are Going Up
According to data from ApartmentList, rents across the country are rising steadily, Colorado included. Although they’re not rising as quickly as they did in 2021 (8.8% from January to June), rental rates in 2022 are surging past pre-pandemic rates. Nationally, rents increased 5.4% over the first 6 months of 2022. Compared to the same period in the years before the pandemic, rates have increased tremendously. January to June in 2017 increased 3.1%, 3.6% in 2018, 3.4% in 2019, and -0.7% in 2020.
What About Rental Rates in Colorado?
Colorado, too, has seen some significant increases in rent over the last few years. From March 2020 to present, rental rates across many of Colorado’s cities have increased exponentially. During that time, rental rates in Denver increased 12.6%, 21.3% in Fort Collins, and 25.1% in Colorado Springs.
In the past year alone, rental rates in Colorado increased by 12.5%. Denver rental rate increases slowed slightly, while the surrounding metro area surged ahead. Year over year, rental rates for apartments in Denver increased by 11.5%. Arvada increased by 16.2%, Brighton by 13.8%, and Parker by 13.2%. Colorado Springs saw an increase of 9.2% and 14% in Fort Collins.
Rentals Are In High Demand
It’s no secret that Colorado’s housing market is on fire. Home values have surged over the last few years, pricing many out of the market and increasing the need for rentals. High demand and low inventory have created a surge in rental rates across Colorado, making them an extremely hot commodity. Real estate investors across the globe are pouring millions of dollars into the Colorado real estate market, purchasing homes with the intent to rent them out. Build-to-rent communities are also popping up all across the popular metro areas. All of this goes to show that investing in the Colorado rental market is a great way to build wealth. So if you own a rental property in Colorado, hold on to it!