Denver, Colorado (AP) A new report says apartment complexes in central Denver neighborhoods are not as financially secure as they once were and may be more vulnerable to a property downturn.
The report by the Denver Housing Development Authority and the National Association of Realtors says apartments in Denver neighborhoods like Centennial Park and Brighton Park are less financially secure than they were when the city opened its new, $8 billion housing projects in the mid-1990s.
“The housing market is highly cyclical,” said the report’s co-author, Mike Pendergrass, president of the association.
“You’re seeing a lot of people getting mortgages and renting.
That’s not necessarily what’s happening with rent control.”
The study, which is the latest in a series by the National Realtor Council and RealtyTrac, found that rents are up and rents are rising in many parts of Denver, including in Centennial, Brighton Park and Aurora, as people move to neighborhoods that have been less expensive to live in in recent years.
The report found rents have increased by 12 percent in Denver, the fastest rate in the country.
The number of people living in apartment complexes with rent controls rose by 7 percent in 2015, the report said.
The rate was nearly double that of the national average, with about 7 percent of people renting in Denver.
Pendergrass said the increase in rent is a result of increased construction and the rise in population.
Rent control has helped to keep prices in check, but the report says the increase has occurred with little forethought.
“If you were to have a rent control policy in place, you wouldn’t see the housing market stabilize,” he said.
“Instead, you would see people get priced out of those apartments, so the people who were renting would leave.”
Aurora resident Chris Henshaw said rent is higher in Aurora than it is in the city as a whole.
He said he has not been able to afford to move, and he said the city needs to do more to help people who have been priced out.
Henshaw, who rents a house in Centerville, said he is not sure how the city could help people living on the street.
“You’re trying to do something to solve the housing problem, and it’s not going to solve it,” he told The Associated Press.
“It’s like trying to fix a cancer.”
The report says some apartments are not available for rent and have no vacancies.
Hendrix, who lives in Aurora, said it is tough to find housing for her two children who are teenagers.
She said she doesn’t have any friends or family to help her, and she can’t afford to get them into college.
Helshaw said she would like to see more of the city develop affordable housing in Aurora.
The city is not doing that.
She also said the recent increase in rents is bad for the community.
“I feel like we’re not making the city any more affordable,” Hendrix said.