DENVER — The vacancy rate in Denver is reaching historic lows, pushing rent to historic highs. With housing prices out of reach for many people, some are cutting costs by taking on a roommate.
It’s no secret that Denver is a hot spot to live. “People want to live in Denver,” said Ron Throupe, an Associate Professor of Real Estate at the University of Denver.
So much so, they’re willing to sacrifice their personal space and split the cost.
“Living with roommates you have to be a lot more aware of other people`s stuff and have more solid boundaries,” said Racheal Mitchell. She and her boyfriend just moved in together. She said she’s already seeing a savings. For her, she’s always had roommates. “It’s definitely what I`ve been doing to save money for a while.”
According to Zillow, more than 27 percent of working adults in Denver are doubling up. Coupled with near historic lows in vacancy rates, prices are increasing. Surprisingly enough however, rent prices aren’t considered out of reach, yet.
“Still the number’s around the mid-30s to 36 percent of your income, so it`s right now it`s about at the tolerance level,” said Throupe.
Jefferson Peak is at that tolerance level. His roommate just moved out. He said he’s really looking forward to some extra space in his Capitol Hill apartment. “It`s a little bit tight, these places are small. I think it`s like 700 square feet in there. I mean 2 people and a dog living in that is tight, it`s kind of ridiculous.”
But, he’s hoping he can swing it. “Living alone sounds like the right deal for me, if I can pull it off it`ll happen that way.”
Throupe said prices aren’t likely to go down. They might, however, level off.