Rich renters are on the rise in metro Denver
In 2023, 6. 9% of renters in metro Denver fell into the top income bracket, marking a 0. 4 percentage point increase since 2019, according to a Redfin analysis of Census Bureau data. This figure is below the national average of 7. 9%, indicating a slower growth rate in affluent renters locally.
The rise in wealthy renters could elevate competition for rentals, impacting less affluent residents' home-hunting efforts. In metro Denver, a household income exceeding $190,000 qualifies as wealthy, with median rent at $1,900. The current rental market favors tenants, showcasing lower rents and higher vacancy rates compared to previous years, ideal for those seeking good deals. Additionally, national trends reveal that typical affluent renters earn more than necessary to afford a median-priced home, yet rising homebuying costs make renting appealing. This shift highlights changing dynamics in the housing market, particularly as affluent renters navigate their options in an evolving landscape.
The implications of these trends may affect local housing policies and rental strategies.