Whether it’s because the recession wiped out your wealth, your student debt is out of this world, it’s too difficult to afford a home or get a loan, or you are just plain scared of the potential downside of owning a home, you are among a growing trend. As reported by the Washington Post and based on projections by the Urban Institute, this trend will continue until we see more renters than homeowners entering the housing market in 2030.
We certainly have seen the developers filling the need of affordable, for-rent housing in most markets. Colorado’s issue is exacerbated by the “Condo Defect Law” that keeps affordable attached housing developers on the sidelines. Construction costs are escalating and causing new home prices to rise at alarming rates – and renal rates have risen 50% in some areas of Northern Colorado since 2008. Every new apartment development in Northern Colorado (Fort Collins, Greeley & Loveland) has exceeded proforma in regards to lease up and scheduled rents. It’s no wonder we are seeing developers buy up small infill parcels at incredible prices.