Owning a rental property provides a great opportunity to build a passive income. Not only does your resident pay down your mortgage but increasing property values continue to make real estate an incredibly valuable asset. In today’s market, owning single family home rentals in Colorado Springs is a great way to do just that. So if you’re thinking about starting down the path to becoming a real estate investor or if you have a home and are looking at options other than selling, here are 5 reasons why investing in single family home rentals in Colorado Springs is the way to go!
Single Family Home Rentals Are in Demand
The number of households choosing to rent instead of buy has steadily increased over the past few years. Whether due to the inability to buy a home or the preference for flexibility that renting provides, the demand for single family home rentals has skyrocketed. Add to that the preferential and lifestyle changes that the COVID-19 pandemic revealed and you have an incredibly hot commodity. According to The John Burns Single Family Rental Survey, 50% of tenants who moved into single family home rentals in Q3 of 2021 moved from an apartment. This highlights the growing need for single family home rentals, a demand we don’t see going away any time soon.
Single Family Home Rentals Offer Great Returns
Due to the ever-increasing demand, single family home rentals have incredible returns. In 2019, Hoya Capital Real Estate stated that single family rental properties are some of the best-performing rental types. And because of the low inventory and high demand, many single family home tenants tend to stay longer than in multi-family units, decreasing expenses associated with turn-over and finding new residents.
Increasing Rental Rates
Let’s talk economics for a second. What happens when you have low supply and high demand? Prices go up, right? That’s exactly what’s happened in the single family home rental market. According to CoreLogic, rents for single family home rentals across the U.S. have increased over 12% from last year (January 2021-January 2022). The average rent for single family homes in Colorado Springs is currently around $2100 per month.
Values Are Increasing
It’s no secret that home values in Colorado have increased exponentially over the last few years. Year-over-year, home values in Colorado Springs increased by 21% and are predicted to increase another 12% next year. In some cases, many homes across the state made more in 2021 than their homeowner’s salaries, making them an extremely valuable asset to hold on to.
Investor Interest is on the Rise
Investors across the country and even throughout the world have expressed tremendous interest in investing in real estate across the Front Range. Many of them are snatching single family homes off the market with the intention of renting them out, while numerous build-to-rent communities are popping up across the state. If investors are swarming the single family rental market, why not join in and hold on to your gold mine?
Real estate has proven time and again to be an incredible investment. Owning single family home rentals in Colorado Springs is, and is projected to continue to be, a great way to build wealth and a future.