Boulder rental properties have always been popular, including the surrounding area of Boulder County. During the economic turmoil of the last decade, many people lost their homes to foreclosure and were forced to rent. This pushed thousands of homeowners in to the rental market.
However, as the real estate market has recovered rentals are still in high demand. In fact rentals in Boulder County are in more demand than ever. Here are a few reasons why:
The 2013 Floods
The floods that swept through 17 counties in the fall of 2013 damaged or destroyed over 20,000 homes, many of those in Boulder County. That devastation forced many long time Boulder area home owners into the rental market. A good percentage of those homeowners remain in the rental market as they were unable or unwilling to rebuild.
The Department of Local Affairs Division of Housing working with the Colorado Housing and Finance Authority has announced over $30 million in federal and state funding that will be used to assist more than 950 people who are still seeking permanent housing after the flood. As a result 1,035 new affordable rental units will be constructed in several communities including Longmont, Louisville, Fort Collins and others.
Census estimates show a population growth in Boulder County of 6.4% since 2010. Colorado as a whole is at 6.5%. Those may not sound like big numbers. However, to put that in perspective, only 3 states, plus the District of Columbia, grew more during that same period. New residents are more likely to find rentals than to purchase a home before getting to know the area.
Front Range Real Estate Bubble
The real estate market in Colorado as a whole is active and vibrant. There is a shortage of affordable houses on the market even for qualified buyers. The Boulder area, especially, has been experiencing activity not seen in years.
There is a shortage of homes and available houses are being sold at higher prices, many above appraised value. Driving the property values up leaves many otherwise qualified buyers moving to rentals until prices come back down to Earth.
People from across the country are being attracted to the Boulder area for many reasons. The existing residents are sticking around, despite recent hardships. And as we look ahead to the summer of 2015, there is no indication that the Boulder rental market will be slowing down anytime soon.