According to Colorado Division of Housing, vacancies of single-family home rentals surged to a three-year high in the last quarter of 2008.
Denver’s vacancy rate rose to 4.9 percent for the in the last quarter of 2008 from 3.3 percent in the same quarter of 2007. The situation was better than that of 2006’s. The vacancy rates of home rentals in the last quarter of 2006 were 5.5 percent. The situation seemed to be well in the third quarter of 2008, with 3.4 percent vacancy rates.
The real estate market was down due to economy downturn. It resulted in fall of home prices. Owners were reluctant to sell their properties at such low prices and thought of renting them. This led to increase in availability of homes for rentals. I don’t think there is a significant increase in people who used to stay in rented homes. I know that the economy is bad, but would they stop living in houses for that? Thus, the increase in rental houses is the main reason for this.
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