Denver Real Estate Blog

New Demand for Affordable Rental Housing in Colorado

Demand for affordable rental housing in the state is being driven by record foreclosures and rising market-rate rents.

The statewide vacancy rate hit 4.7 percent in the second quarter, down from 6 percent in the first quarter, according to the the Affordable Housing Vacancy and Rent Survey, released on October 8, 2007 by the Colorado Division of Housing and the Colorado Housing and Finance Authority. The demand is increasing for affordable housing as new construction is slowing down, leading officials to fear a shortage of housing choices for people who can’t afford market-rate rents.

“No. 1, the impact of foreclosures and short-selling (where the lender accepts less than the mortgage amount in lieu of foreclosure), means that more people are moving back into apartments. As a result the tightening of the market-rate units is pushing rents up, so people who previously could have had a choice are now being forced into subsidized, affordable housing.

The tightest markets for rent-restricted housing were in Grand Junction, Pueblo, the Denver area and Colorado Springs, where vacancy rates were 1.7 percent, 4.1 percent, 4.3 percent and 5.1 percent, respectively, according to the report by Gordon Von Stroh, a business professor at the University of Denver. The Boulder/Broomfield area reported the lowest vacancy rate in the metro area at 2.9 percent. Douglas County reported the highest vacancy rate in the metro area at 6.9 percent.

The highest vacancy rates were found in the northern Colorado communities of Greeley, Loveland and Fort Collins, where vacancy rates stood at 5.6 percent, 7.8 percent and 8.2 percent, respectively.
Affordable housing tends to be more stable than market-rate rental, so it likely isn’t as much affected by seasonal changes. The state prefers to see new affordable housing mixed with market-rate rental communities, said Kathi Williams, director of the division of housing.

Resource

A Colorado Rental Property Resource for both landlords and tenants can be found at http://www.coloradorentalproperty.net . Online land lords can post detailed information regarding thier rental property, including 5 color photos. The ad can be self directed by the landlord to their cell phone or property management company. This is a service provided FREE by RealEstateColorado.Net and the ad will remain on line until it is asked to be removed.

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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.