The rental market in Lakewood, Colorado and throughout the Denver metropolitan area continues to attract tenants who are looking for well-maintained homes in desirable locations. While the recent pandemic has caused some economic shifts all over the globe, we’re not seeing too much of a disruption in terms of how our market is performing. Lakewood remains a great place to invest, whether you’re hoping to buy your first property or you want to continue growing your real estate portfolio.
Now that we’re halfway through 2020, we want to let you know how things look for the rest of the year, and whether it’s a good time to buy a rental property.
Investing in the Lakewood Rental Market
Denver’s population has exploded in the last 10 years, and many of the neighborhoods and communities in Lakewood have benefited from this population growth. With housing prices in Denver a bit out of reach for some buyers and renters, Lakewood is an excellent alternative, offering people more affordable homes and a high quality of life.
Local buyers and out-of-state investors who want to buy a rental home are in a good position. There is no shortage of highly qualified tenants in Lakewood and with all the opportunities for recreation, employment, and education – people are happy to relocate here and stay for the long term. Investors will always find a strong pool of potential residents for their properties.
Another good reason to invest now is that interest rates are lower than they have ever been, and they’re likely to remain affordable. Rents have not decreased, even with the pandemic, and owners can expect to earn consistent income whether they buy a single-family Lakewood home or a multi-family building or unit.
Demographics Support Lakewood Rental Investments
Lakewood’s real estate market is not exempt from the shifting demographics in renters. Most Millennials prefer to rent because they like the flexibility and the freedom that comes with avoiding homeownership, even as they move forward with their careers and begin raising families. There’s also an influx of active adults who are thinking about retirement. They prefer the low-maintenance lifestyle that comes with rental homes, and Lakewood is an ideal place for retirees seeking great homes.
Supply and Demand in the Lakewood Real Estate Market
Lakewood has been a competitive market for many years, and while the inventory of existing homes has been lower, new construction has helped provide fresh opportunities for investors. Over the last few years, buyers have had the opportunity to purchase units and homes that recently arrived on the market. In 2019, the National Association of Home Builders reported that Colorado led the U.S. in new home sales. We expect this trend to continue throughout the rest of this year.
Home values are also rising. Prices are stable, but not prohibitive in Lakewood, giving investors at every level the chance to purchase something that fits their investment profile. The chaos of the economic climate that was caused by the pandemic may continue to send us some surprises throughout the summer, but by the end of the year the real estate market should be as strong as it has been these last 10 years. The rental market will continue to perform well, bringing in consistent rental income and the potential for long term returns.
It’s an excellent time to buy a Lakewood rental property, and we’d be happy to help. If you have any questions about rental values, market trends, or Lakewood property management, please don’t hesitate to contact us at Assured Management.