78% of independent Colorado landlords reported that they do not plan to purchase more property this year, according to a recent study conducted by TurboTenant.
And it’s no surprise why when we examine housing prices in cities like Fort Collins. Zillow indicates the average Fort Collins home value is $585,128, an impressive 15.9% increase year over year. In neighborhoods like Old Town North, the home value jumps to a whopping $759,321, which is a 21.1% increase year over year.
While housing prices have increased at a steady pace, monthly rental income hasn’t kept up for Northern Colorado landlords. TurboTenant’s Rental Data Center indicates that the median rent for a two-bedroom unit in Fort Collins has increased by only $100, or 7.1%, since 2021.
TurboTenant deployed eight surveys to landlord and renter audiences over the first half of 2022, garnering over 4,000 completed responses. Their four-part report provides insight into why people become landlords, how landlords plan to expand their business, and whether they would purchase more real estate before the year ends.
“It did not come as a surprise to learn independent landlords here in Colorado are pausing their portfolio growth efforts, based on our report. While there has been some decline in housing prices nationally, Northern Colorado remains among the most attractive real estate market in the country,” said Seamus Nally, CEO of TurboTenant. “If local housing prices flatten or decline, I anticipate independent landlords will be quick to start growing their portfolios again. In the current climate with rising interest rates, they gain an advantage since independent landlords aren’t confined to financing with conventional mortgages. Additionally, recessions typically put upward pressure on the rental market, which we expect to see.”
More than 450,000 independent landlords across the U.S. enjoy TurboTenant’s free, all-in-one online property management solutions. Features offered by TurboTenant include rental applications, tenant screening, property marketing, rent payments, lease agreements, and rent reporting. Please reach out to firstname.lastname@example.org for specific data requests.