Rental Demand High, Housing Prices Less so
- Jun 10, 2011
By Alex Girda, Associate Editor
Real estate news this week revealed just how hard the recession has hit the market in recent years. A Denver Post story regarding the recent Standard & Poor’s/Case – Shiller Home Prices Index confirms that numbers nationwide indicate a double dip recession.
The Denver market has managed to avoid setting a new low point, but the figures aren’t exactly encouraging. According to the index, Metro-area Denver has reached the same levels as 2001. Ron Thorne, a Keller Williams Advantage Realty representative quoted by The Post, mentioned that the city’s situation is not as bad for home owners as it is for renters. He also said that conditions for renters will most likely be aggravated by the low vacancy rates and further increase in demand.
Also in the headlines is the old Safeway property in Louisville which is set for a massive development that would bring high-end housing and retail to an otherwise vacant site. The initiative is being spearheaded by Loftus Development, a company that bought the site back in April.
The plan, as noted in the story reported by www.dailycamera.com, is to create an apartment community of 195 rental units, as well as providing 10,000 sq. ft. for retail and a parking structure. The total cost for the development will be around $30 million. It is expected to reignite interest in the area as well as satisfy part of the need for residential rental units in the city of Denver.