Denver’s rental home bidding wars: As home buying cools, rental market heats up

DENVER – As Denver’s housing market cools following the rise of federal rates of interest, the competitors for locating a rental house within the Denver metro space is heating up.

For nearly two months, Christopher Byard and his girlfriend have stuffed out greater than 25 rental house functions within the Denver metro and have but to discover a rental house.

“The e-mail reads, “You are one of many high candidates being thought-about. We’re going again asking candidates to place their greatest supply ahead,”” Byard stated, studying an e-mail from a property administration firm. “I imply, I really feel like that is what my mates undergo within the bidding wars for getting homes.”

Byard says he’s discovered himself in a number of bidding wars for rental properties over the previous few weeks.

“I am not passing judgment, however I am shocked at any individual who would go like, “Oh, that is listed for $2,700 a month. I am going to give you $3,000 a month,”” Byard stated. “Via a rental company, we had seen this one property. In the end, we did not get the property, after which they stated they’d one other property that we is likely to be eager about. However to satisfy the lease, we must pay the 12 month’s lease upfront, which is totally bonkers. That is like, you already know, $36,000.”

After mentioning his housing issues on his podcast, Stoned Appetit, Byard says he acquired dozens of responses from his listeners who’ve skilled related rental house bidding wars in Denver’s housing market.

Rob Warnock, senior analysis affiliate at Residence Listing, says the aggressive rental market in Denver is just like what’s occurring in lots of massive cities throughout the nation.

“Actually, the market circumstances are giving plenty of leverage to landlords and property managers,” Warnock stated. “There’s plenty of demand for flats, plenty of very low emptiness charges, housing building was impacted by the pandemic and has slowed the provision of latest properties, particularly flats in main cities. All of because of this vacancies have gotten more and more scarce in comparison with the place they had been earlier than the pandemic.”

Warnock says usually buyer-friendly housing markets make house leases extra reasonably priced.

“However we’re type of seeing the alternative proper now, with so many individuals caught renting as a result of that is all that they will afford,” he stated.

Warnock says there are some things renters can do to compete out there with out providing to pay more cash.

“There’s lease phrases, like with the ability to lease for longer, that’s favorable. So I might advocate taking a look at different components of a lease which might be negotiable,” he stated.

“I’ve lived right here for 12 years now and it is by no means been this tough to discover a place,” Byard stated.

Byard says he’ll view one other property this week, and he’s hoping his house search will quickly finish.