Job growth in Denver is still steady, says a recent report by the Metro Denver Economic Development Corp. 1,300 jobs were added in Metro Denver through the first eight months of 2007, which is up 1.8 percent over the same period last year.  The report shows that even with a high foreclosure rate, the economic growth is fairly steady in Colorado and the unemployment rate is still relatively low.
    Another recent plus is that a state report just last week shows the vacancy rate for Metro Denver has dropped to its lowest in about seven years.  We’re now at 5.3 percent for the third quarter, whereas last year at this time we were at 6.7 percent, and the year before that in 2005, we were at 7.7 percent.  We haven’t seen vacancy rates this low since the first quarter of 2001.
    I’ve heard lots of theories floating around that the high foreclosure rate and the declining vacancy rate are tied to one another, which, from a logical point of view makes sense.  People are losing their homes left and right and they can’t purchase for awhile because their credit is shot; they have to live somewhere, right?  However, we have to realize that the increasing rental rate numbers are based mainly on multifamily apartment buildings and not single family home rentals, which are much harder to track.  
    But don’t negate the theory quite yet that a glut of foreclosed homes equals a better single family rental market.  Studies have shown that those people who have lost their homes to foreclosure and were in a single family home tend to gravitate toward that single-family home-rental market rather than the apartment market.
    What does this all mean from a real estate investment point of view?  Well, the multi-family market has been improving and is predicted to continue along this route in the foreseeable future.  It may be a fun time to get into the game and pick up a building or two.  Not up for an entire building?  You can buy some single family foreclosed properties at a great price right now, and will most likely be able to get the homes rented.   
Emily Bullard / Broker Associate, Investor / emily@mynewera.com / 303.903.9457 

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