According to a recent article on Apartment List, you aren't alone if you are feeling the squeeze when it comes to making ends meet as a renter:
The uptick in home foreclosures during the recession created a nationwide increase in demand; the result was rising rental rates and because businesses were suffering, a decrease in income at the same time. Not an ideal situation for families and individuals who lost a home to foreclosure and were forced to choose between the rental market or taking up residence in grandma's basement.
If you happily own a home, these issues may feel like water under the bridge or somebody else's problem - unless you are the aforementioned grandmother and Junior and the missus just won't leave. If, however, you are currently or soon to be a renter in the Denver area, pricing trends in the rental market may mean the difference between dinner out with friends and off-brand PB&J on the couch at home.
Rent Jungle data suggests Denver rental rates have increased between 5.6 and 6.1% in the past 6 months; this represents an increase of $74 for a one bedroom on average and $104 per month for a two bedroom. If you didn't happen to get a 5-6% raise in the last six months, you may not have an extra $100 to spare. Over the course of a year that's $1200 bucks you might have spent on a vacation, a chic new sofa or the good brand of peanut butter. And oh yeah - shelling out big bucks for rent lines your landlord's pockets, but you aren't gaining equity or enjoying the benefits of homeowner tax deductions, either.
If you know you'll move on from point A to point B in 6 months to a year, you should probably rent (or stay put with grandma.) Closing costs and other expenses of buying a home probably make a short term living situation the sensible choice for you. If, on the other hand, you plan to spend longer in beautiful Denver, Colorado or any surrounding community, consider investing in real estate. Pride of ownership, tax deductions, equity building, and your very own kitchen cupboards to stash peanut butter and whatever else makes you happy.
If you are interested in buying a single family home, condo or townhome and putting more of your hard earned money toward home equity instead of inflated traditional commission, get in touch. We are Denver's leading full service, commission free real estate company, and we'd be happy to help you ditch your tired rental and find a place to call home.