Denver Apartment Rent Increases to be Largest in U.S. This Year - Study

[Matthew Schroeder]

Interesting article.  Denver rents projected to be up 9.0% year-over-year (tops in the nation!), even better than San Francisco at a still impressive 8.5%.

http://kdvr.com/2015/04/14/study-denver-apartment-rent-increases-to-be-largest-in-u-s-this-year/

[Scott Trench]

I'm staying cautious before betting the farm on rising rents just due to the incredible amount of inventory being constructed - 18,800 units forecasted for 2015.  That said, there are even more people projected to move here than there are projected new housing units  - in all likelihood rents will continue to rise and prices will continue to increase.

That said, it's a risky proposition to bet on continued growth - a hiccup could cost you significantly.  On the other hand, if these numbers prove true, any fool that happens to buy property here in the next few years may make money.

I'm just trying to buy cash flowing rental property near the city center as cheaply as I can.  I'd feel uncomfortable with properties that cash flow negative, but I'm ok with sacrificing some cash on cash return (as long as it's still cash flow positive!) relative to another market.

I think that these numbers are indicative of a booming economy, a growing city, and a wonderful place to live.  I'd like to keep my money here in Denver, where I see people moving here, staying here, getting great jobs, taking care of their houses and their community, working in gorgeous new office buildings, and taking advantage of the new public transit systems.  This is a growing city, and if you want to take part in that growth, you'll likely need to understand that part of that is a lower cash on cash return in the short term from any rental units, relative to other markets.