Are you renting in Denver? If you are, then you’re probably all too familiar with how high rent is right now. Rent in Denver has gone up 48% since 2010. Wow. That’s just crazy! The only city in the country whose rent increase is higher is the Bay Area. We saw the biggest jump in 2015 when we had a 10.5 year-over-year increase. There are multiple reasons that are driving rent prices up. The driving factors are outlined below.
Between 2012-2015, the high-paying jobs drove Denver to be ranked 3rd in the nation for median household income growth. Notably, technology and oil and gas companies led the way in the hiring growth. Furthermore, Denver International Airport assisted in boosting tourism, which led to rising wages for many people.
Denver has been a growing job market for the past decade or so. With more and more start up companies and tech companies relocating to Denver, the number of transplants has been increasing for a while. In 2015, Denver ranked 7th in the nation for percentage of adults 25+ with a bachelor’s degree or higher.
Rent and real estate go hand in hand. As the market got ‘hot’ in 2015, prices rapidly rose to a point where many wouldbe house hunters were forced to rent instead. And with Denver’s increase in jobs for those who hold a Bachelor’s degree or more, the rent prices have been negatively impacted.
We blame those guys for everything bad, don’t we? In this particular case, they are guilty. From 2011-2015 Denver metro saw an increase of nearly 11% in the age demographic between 20-34. The only city to beat Denver’s growth in the same age demographic was Austin.
All in all, Denver rent and house prices continue to be on the rise. With the mountains nearby and great restaurants popping up all over the metro area, the city still seems to be attracting millennials. Additionally, wages continue to rise and companies continue to locate or start up in the Denver metro area. So, the job growth doesn’t seem to be tapering off any time soon. And lastly, if Amazon decides to headquarter here, rent and house prices will only increase.
Want to learn more about Denver rent? Check out RealPage.com, a property-management software firm that’s been tracking the Denver market for years.