Below are links to resources on important issues impacting the housing market today.

Rent Control
Who Are Today’s Renters?

Rent Control

Proponents of Rent Control Say…

  • Proponents believe that rent control will lower and keep rents the same.
  • Proponents also believe: “Rent control is the quickest and easiest way to provide relief to renters in danger of being priced out of their homes” (PEW 2018).
  • According to a 2017 report by the Harvard Joint Center for Housing Studies, “nearly half of renters fit the federal definition of “cost burdened”, which means they spend at least 30% of their net income on housing” (Some think that rent control alleviates “cost burdens”).

Opponents Say…

  • Rent control cause renters to hold on to large apartments they may no longer need, and then often choose to illegally sublet, pushing many landlords out of the affordable rental housing business, making matters worse. (paraphrased from PEW 2018).
  • Rent control does NOT help new renters.
  • Numerous studies show that units deteriorate in value as a result rent control.
  • According to a January study by the Stanford Graduate School of Business, “rent control creates both winners and losers, even among renters. Longtime renters who have been living in rent-controlled units benefit greatly from rent control, while new renters end up paying higher rents because the supply of available units is constricted” (PEW 2018).
  • Landlords facing rent control regulations are far more likely to convert units into condos or redevelop buildings to circumvent rent control regulations, further reducing rental stock and driving up rents” (PEW 2018).
  • According to Alexandra Alvarado, Director of Marketing and Education at the American Apartments Owners Association, “there is definitely a housing crisis, everyone agrees on that. However, we don’t agree on how to remedy that, rent control just is not the way to go about it. Landlords are worried about rent control shortening the housing supply” (Alvarado, 2018).
  • Rent Control does not preserve existing affordable units.

According to Mark Willis, Senior Policy Fellow at New York University, “we need a comprehensive and balanced plan if we are going to begin to address the difficulty to finding affordable housing. To truly address the housing crisis, cities need to build more affordable housing: preserve existing affordable housing units; help people stay in their homes and help tenants find housing in resource rich and high opportunity neighborhoods” (Willis, 2018).

National Multifamily Housing Council Rent Control Fact Sheet (download here)

December 2018, Stanford Study (download here)

Wiltz, Teresa. “Rent Control is Making a Comeback: But Is That a Good Idea?” PEW Stateline, Business of Government and Demographics. November 28, 2018. (download here)

National Multi Family Housing Council. “Rent Control” NMHC/NAA Joint Legislative Program. 2018 (download here)

Who Are Today’s Renters?

Renting is on the rise. As Colorado continues to grow, it’s important to be familiar with the different types of renters that are looking for attainable housing.

Young Singles: 29%

  • The largest group of renters is the “Young Singles.” This group is also the youngest, with an average age of 26 years old. Young singles tend to have limited incomes, high rent-to-income ratios, and move around frequently.

Young Adult Roommates: 21%

  • These renters are around age 28 and live in households with two or more adults. Although their income level is similar to those in Young Singles, these renters take advantage of combined incomes and opt for slightly pricier units. They tend to live in higher-end suburbs or the urban core.

Perma-Renters: 16%

  • These residents are typically in their early 40s, single, and have moderate annual incomes. Despite making up 16 percent of the rental population, these renters are typically overlooked in discussions about housing and rental properties. They are much more likely to renew their leases at least once, staying in the same apartment for a longer period of time than younger renters.

Middle-Class Boomers: 11%

  • Eleven percent of all renter households are middle-class boomers. Relying on a more modest income from their retirement savings, these boomers tend to live in smaller units in the suburbs. Middle-class boomers are typically single-person households and are the most likely to renew an expiring lease.

Older Millennials: 8%

  • These residents in their early 30s are responsible for much of the demand for newer, high-end properties. Almost always single or living alone, they are drawn towards urban areas or suburban locations near large career centers.

Working Families: 6%

  • At 6 percent of the rental population, working families largely opt for single-family rental homes rather than apartment complexes. “Working Families” have one or more children, but not always two adults. In fact, a significant portion of this group is single-parent households.

Young Couples: 5%

  • Like “Working Families,” the “Young Couples” tend to be in their mid-to-late 30s and more affluent than younger millennials. These residents prefer new, upscale properties in economic boomtowns. So, even with larger incomes, they can find purchasing a home in their desired market to be challenging.

Animal Lovers: 4%

  • At 4 percent of the renter population, “Animal Lovers” have two or more pets in their household. These renters tend to be in their early 30s with annual incomes averaging $65,000. Denver is an incredibly popular metro area for these renters.