SLIDES & VIDEOS AT: FEBRUARY 15, 2018

Transcription

1 SLIDES & VIDEOS AT: FEBRUARY 15, 2018

2 2017 Economic Summit & Real Estate Forecast Kevin Risen, Moderator & Executive VP CB Colorado

3 Is the Rental Market Headed for Boom, Bust or Somewhere in Between?? Greg Bacheller Real Property Management Colorado President/Co-Owner

4 Colorado s Real Estate Market Leads the Nation, How So and Why? Chris Mygatt President & COO of Colorado s Top Real Estate Source Coldwell Banker Real Estate

5 Is the Global and National Economy Really This Good and For How Long? Elliot Eisenberg Ph.D., Chief Economist and Global Business Consultant

6 The Rental Market Update Greg Bacheller Real Property Management Colorado President/Co-Owner

7 Let s Talk Single Family Home Rentals

8 Let s Talk Single Family Home Rentals Average monthly rent for the Denver Metro area: $2,043 (4.11% increase year-over-year) Average monthly rent for Colorado: $1,816 (up 9.27% year-over-year) Average monthly rent nationwide: $1,467 (a 7.24% year-over-year increase) Source: Press Release by Real Property Management Colorado and RentRange dated January 24, 2018

9 Let s Talk Single Family Home Rentals Vacancy rate for the Denver Metro area: 2.84% Vacancy rate for Colorado: 1.88% Vacancy rate nationwide: 5.41% Source: Press Release by Real Property Management Colorado and RentRange dated January 24, 2018

10 Let s Talk Apartments

11 Let s Talk Apartments Denver Metro area absorbed 11,821 new apartment doors in 2017 (highest number in a single year since this data started getting reported in 1981) At the end of 2017, there were 131 apartment communities under construction representing 31,000 doors, of which another 11,000-15,000 will come onto the market in 2018 Average rent dropped to $1396 Source: Q4 Denver Metro Apartment Vacancy and Rent Report and Bisnow National

12 Let s Talk Apartments Vacancy rates shot up to 6.4% (highest in 7 years) Some areas in downtown Denver reporting vacancy rates of 10-12% The Denver Metro area had an estimated 21,541 vacant units available at the end of 2017, the highest amount since 2009 Source: Q4 Denver Metro Apartment Vacancy and Rent Report

13 Let s Talk Home Ownership Rates Homeownership Rates for the United States: 2005 to Source: U.S. Census Bureau, Current Population/Housing Vacancy Survey, October 31, 2017

14 Let s Talk About What Denver Renters Think About Denver Denver renters give the marketplace a overall Recreational activities and social life Job, career opportunities, weather, public transit, and pet friendliness Affordability Source: Denver Business Journal

15 Let s Talk Fight or Flight San Francisco: At Work Source: Big Bytes and Google

16 Let s Talk Fight or Flight San Francisco: At Home Source: Big Bytes and Google

17 Let s Talk Fight or Flight Seattle: At Work Source: Big Bytes and Google

18 Let s Talk Fight or Flight Seattle: At Home Source: Big Bytes and Google

19 Let s Talk Fight or Flight Washington, D.C.: At Work Source: Big Bytes and Google

20 Let s Talk Fight or Flight Washington, D.C.: At Home Source: Big Bytes and Google

21 Let s Talk Fight or Flight Austin: At Work Source: Big Bytes and Google

22 Let s Talk Fight or Flight Austin: At Home Source: Big Bytes and Google

23 Let s Talk Fight or Flight Denver: At Work Source: Big Bytes and Google

24 Let s Talk Fight or Flight Denver: At Home Source: Big Bytes and Google

25 Let s Talk About The Rent Vs Buy Conundrum 3 Bedroom, 2 Bath Single Family Home in Highlands Ranch Rent Value 30 Year Fixed Interest Rate 10% Down PIMI Payment 2014 $1695 $279, % $ $2050 $384, % $1886 Source: Real Property Management Colorado, Freddie Mac, and Zillow

26 Lastly, Let s Talk About This The Zillow Rental Puzzle Solved At Last! Condos Single Family Homes Townhomes 22% 15% 18% On Average 19% Higher! Source: Real Property Management Colorado and Zillow