SLIDES & VIDEOS AT: www.coloradoeconomicsummit.com FEBRUARY 15, 2018
2017 Economic Summit & Real Estate Forecast Kevin Risen, Moderator & Executive VP CB Colorado
Is the Rental Market Headed for Boom, Bust or Somewhere in Between?? Greg Bacheller Real Property Management Colorado President/Co-Owner
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
Is the Global and National Economy Really This Good and For How Long? Elliot Eisenberg Ph.D., Chief Economist and Global Business Consultant
The Rental Market Update Greg Bacheller Real Property Management Colorado President/Co-Owner
Let s Talk Single Family Home Rentals
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
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
Let s Talk Apartments
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
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
Let s Talk Home Ownership Rates Homeownership Rates for the United States: 2005 to 2017 70 69 68 67 66 65 64 63 62 61 60 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Source: U.S. Census Bureau, Current Population/Housing Vacancy Survey, October 31, 2017
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
Let s Talk Fight or Flight San Francisco: At Work Source: Big Bytes and Google
Let s Talk Fight or Flight San Francisco: At Home Source: Big Bytes and Google
Let s Talk Fight or Flight Seattle: At Work Source: Big Bytes and Google
Let s Talk Fight or Flight Seattle: At Home Source: Big Bytes and Google
Let s Talk Fight or Flight Washington, D.C.: At Work Source: Big Bytes and Google
Let s Talk Fight or Flight Washington, D.C.: At Home Source: Big Bytes and Google
Let s Talk Fight or Flight Austin: At Work Source: Big Bytes and Google
Let s Talk Fight or Flight Austin: At Home Source: Big Bytes and Google
Let s Talk Fight or Flight Denver: At Work Source: Big Bytes and Google
Let s Talk Fight or Flight Denver: At Home Source: Big Bytes and Google
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 $279,750 4.66% $1424 2017 $2050 $384,759 4.31% $1886 Source: Real Property Management Colorado, Freddie Mac, and Zillow
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