The blog WhoSaidYouSaid had an explanation of why Denver Mayor Michael Hancock’s de-Brucing proposal may be a bad idea for low income persons who rent. While economists might disagree on whether higher property taxes are passed on to renters, author Joshua Sharf’s analysis of rent prices and vacancies in Denver does make a good case that higher property taxes will likely be passed on to renters.
Right now, rents are rising at the fastest rate in 20 years, a result of tight rental market with a vacancy rate of 4.8%, the lowest since 2001. Anecdotal evidence confirms this. A friend of mine who owns rental properties in town posted a “for rent” notice, with a rent slightly higher than she had asked the previous year. She was flooded with inquiries, many of the, “I hope it’s still available,” variety.