This newsletter is a compilation of news and information regarding the rental markets in Boulder and Broomfield counties and the economic status of and outlook for the area. It is issued during the first week of the month. The sources for the data include local and regional news media, association publications and seminars, and information gathered from contacts in the property management and real estate fields. We make every effort to cite all of our sources. Should we miss one please let us know so that we can correct the omission.

National Economic News

The Federal Reserve Bank raised interest rates for the 9th time in a year on June 30. The Fed insisted that the economy is on steady ground, despite gyrating energy prices. (The Denver Post, July 1, 2005).

The dollar gained ground overseas, hitting its highest level against the euro in 13 months. (The Denver Post, July 5, 2005).

In May, U.S. factory orders had their largest increases in a year, indicating a manufacturing boost to the economy for the second half of the year. (The Denver Post, July 6, 2005).

1. S. home resales fell in May for the first time in four months, but still remained close to record highs. (The Denver Post, July 7, 2005).

Jobless claims for unemployment benefits rose the first week of July due to automotive factory furloughs. Other companies continued to add jobs, and there is no expected slowing of the national economy. (The Denver Post, July 8, 2005).

Nationwide, employers added 146,000 new jobs in June, pushing the unemployment rate to a 4 year low. (The Rocky Mountain News, July 9, 2005).

Stocks gained during July, due to good economic news derived from employment and manufacturing increases. (The Denver Post, July 10, 2005).

On July 20, the Federal Reserve Board delivered an upbeat economic report, announcing that the economy should continue to grow in the upcoming months with low inflation. (The Denver Post, July 21, 2005).

The U.S. index of leading economic indicators surged in June to its largest increase in 15 monhts, indicating that the economy is picking up steam. (The Denver Post, July 22, 2005).

July ended with more positive economic news. The Federal Reserve Board announced continued positive jobs growth and a handle on inflation, while new homes sales set a record. (The Denver Post, July 28, 2005).

Regional Economic News

Colorado ranks 47th in the nation in home appreciation. The lag is linked to lower new job creation as compared to other states. (The Denver Post, July 6, 2005).

The Colorado economy improved in 2004 from a point near the bottom as compared to the rest of the nation, to mid-way in the pack. (The Denver Post, July 12, 2005).

Colorado had a 2.3 percent increase in jobs for the first half of 2005, pushing the state to its highest employment level since 2001. (The Rocky Mountain News, July 23, 2005).

Home prices in Denver broke a month old record by 0.3 percent over last month and 3 percent over July of 2004. The median price for a single family home is now $252,250. The median price of a condo is $164,000. (The Denver Post, July 27, 2005).

The stock market had a strong month in July, with the Dow Jones Industrial Average gaining 3.56 percent for the month, its strongest July since 1997. (The Rocky Mountain News, July 30, 2005).

The more things change the more they remain the same. I don't know who said it first but it definitely applies to the current rental market. The chart above shows we have about the same number of advertised rentals as we did this time in 2002. We are seeing rents increase slightly in most areas. The exceptions are Longmont and the Boulder student market. Both of these markets are still seeing a glut of available rentals and rents dropping to attract potential renters.

Another factor we are seeing is gasoline prices. I am getting a lot more comments about the cost of driving and people looking for rentals closer to their place of work or school. With gasoline prices predicted to peak around $70/barrel this will become more and more of a factor.

How will all this work out? It is anybody's guess. Our September newsletter will give us the results of the peak season. Stay tuned.

As mentioned in the general rental market news this is a mixed bag. The student rental market is very slow right now. Just a week away from classes starting in the Fall and there is a lot of availability. Lots of properties on the market and the students are learning that in this market they can wait until the last minute and get some great reductions in rents. That and they are learning that moving just off the Hill (sometimes still in walking distance) can reduce rents significantly.

There is a group of citizens, businesses, CU and City representatives that are meeting to try and find ways to help educate the residents about binge drinking. This is becoming more of a problem and there are multiple groups working to educate those offenders. This will be an on-going problem.

The City has instituted a new page on their website they refer to as Skip-a-trip. This allows anyone to file a complaint with Environmental Enforcement on-line. While this may seem like a good idea on the surface we will have to see if the Enforcement group gets overwhelmed or the landlords and owners start getting a large number fines.

What is a competitive rent for your property? There is no one answer for everyone. We will be working with each of our clients to determine how their property should be priced in this market. Please contact us if you have specific questions or want more information.

We are actively working to grow the business and to add new properties to our management inventory. If you know someone that would be interested in our services please send them our way. We pay referral fees to anyone referring us business!

That wraps things up for this month. Again, if you do not want to receive these messages please call or email us and we will take you off this mailing list.