Home buyers have faced intense competition for years, but home tenants find themselves increasingly worse off when trying to get hold of a new apartment. According to a new study by RentCafe and Yardi Matrix.
That may sound extreme, but Denver is actually the US average for applicants per open apartment. In Knoxville, Tennessee, there were an average of 36 vacancies, while in Lehigh Valley, Pennsylvania, 35 people applied for each available apartment and in Eugene, Oregon, 30 people. In Colorado Springs, the only other Colorado metro included in the study, the average was 15 applicants per apartment, while in Albuquerque and Salt Lake City an average of 19 applicants per apartment.
Of the 105 largest markets surveyed, housing tends to be much scarcer on smaller subways than on larger subways, reflecting both developers’ lack of attention to these smaller markets and the flexibility in relocation that has enabled remote working . Eugene was the most competitive housing market in the country in 2021, followed by San Diego and Knoxville. California’s Central Coast region came fourth, followed by Lehigh Valley and Sacramento.
The big versus small metro theme played out in Colorado, where Denver was ranked 38th while Colorado Springs was ranked 27th in the densest housing market, although both had a similar occupancy rate of 95.4%, according to the Yardi Matrix of the U.S. Occupancy rate corresponded.
In Colorado Springs, vacant homes will be turned over in 22 days, which is the seventh fastest speed in the country, and ahead of Denver’s turnover time of 27 days. One area that Denver ranks ahead of Colorado Springs is the average creditworthiness of home applicants – 660 vs. 647. Nationwide, the average creditworthiness of tenants is 640, and Denver renters had the 15th highest score.
One reason for the rise in average creditworthiness is that more high-income millennials cannot afford to buy a home and continue to rent it, said Michelle Cretu, a spokeswoman for RentCafe, an apartment search engine.
“Nationally, the proportion of apartment applications from tenants earning more than $ 50,000 is 39%, its highest level in five years as many potential homebuyers were priced in an overly competitive real estate market in 2021,” she said .
Aurora saw a 28% increase in tenants earning more than $ 50,000 last year, and other suburbs outpaced Denver’s 11% growth rate as more renters sought more housing for their monthly payment than the urban core offers trend experts could call the “donut effect,” said Cretu.