From the Denver Post:
The apartment vacancy rate in the Denver metro area fell to 5.4 percent in the fourth quarter of 2011, dropping to the lowest fourth-quarter vacancy rate recorded since 2000, a report released today by the Apartment Association of Metro Denver and the Colorado Division of Housing said.
As vacancy rates moved down, the area's median rent increased.
During the fourth quarter of 2011, the median rent in metro Denver rose to $870, increasing 2.8 percent from 2010's fourth- quarter median rent of $846.
Read the entire article here.
Unfortunately, kind of inevitable. I have talked about what I call the "tipping point" in past blogs and I wonder if we are getting closer. At what point does continuous rental increases push renter into being buyers? At this point, you have to assume that you will be paying more in rent after your 1st year as there does not seem to be any rush by landlords to offer discounts/ incentives when vacancy rates are so low. I know the housing market seems unstable at present, but how long will it be this way? People need a place to live. Owning a home not only offers the potential of appreciation, but many tax breaks. With housing prices beat down and interest rates at about the lowest they have ever been, owning has to be a consideration. And, after all, you are paying your landlords mortgage, plus some in most instances.
Play around with my many mortgage calculators and see if home ownership is right for you.
Also, if you have any interest in learning about what it takes to buy a home here in the Metro Denver area, register for one of my free home buying webinars here.