[discuss-dan] Time for a Rent Strike in Denver?

["Doug Bohm" <doug@denverradio.org>]

“Let’s Lynch the Landlord!” – Jello Biafra, Dead Kennedy’s

Front page article from the Denver Post reveals rents rising 2.5 times the
rate of inflation in Denver.  A five year high!  Parts of the article are
reprinted below.

I just had a 15% rent increase, myself.  Although I’m paying below the
average rent (of $792.67, according to the article) I still can’t pay on
time, slaving a full 45 hrs/wk at $9/hr.  If this is killing me, a single
guy with no dependents, then I’m fired up enough to help those families that
are struggling and seriously getting gouged by the robber barons.

I’m not sure what the laws are on rent strikes or coordinated rental efforts
such as tenant unions.  Historically they were somewhat successful prior to
the turn of the LAST century, but there probably hasn’t been many since.
Although a guy at work told me his brother lives in a building in New York
that has a strike going on for the last 3 years(? I’ll try to get more
info).

As fuel prices continue to increase under BushOil, Inc., and the
responsibility is shifted more toward tenants/taxpayers - away from the
owners, that doesn’t leave us renters in a good position.  The time to
organize is now!

Any interested parties, let’s get a discussion going…..



Rents gain 8% in tight market
By Kristi Arellano  <mailto:karellano@denverpost.com> 
Denver Post Business Writer 

Jan. 25, 2001 - Denver-area apartment rents rose nearly 2.5 times the rate
of inflation last year - the most in the past five years, a report issued
Wednesday said. 
The average rent for the fourth quarter of 2000 was $792.67, largely because
of strong demand for apartments in a market that's airtight. That was up
$59.06, or 8.1 percent, from the same period in 1999. 
The growth surpassed previous yearly increases, which have hovered between
5.6 percent and 7 percent since 1995, according to the data released by the
Apartment Association of Metro Denver. By comparison, the national Consumer
Price Index rose 3.4 percent in 2000. 
"Rent did go up, but it's still significantly less than the increase in
single-family home prices," said Gordon Von Stroh, a University of Denver
management professor who compiles the quarterly report for the apartment
association. The report is sponsored by a handful of businesses, including
brokerage firm CB Richard Ellis, the Colorado Housing and Finance Authority,
and Apartment Finders International. 
The average price of a single-family home in the metro area was $251,275 in
December. That was up 14.6 percent from the same period a year ago,
according to Perry & Butler, a brokerage firm that tracks the real estate
market. 
Apartment experts attributed the 8.1percent rent increase to rising energy
prices, labor costs and the increased amenities provided in apartment
communities. 
Apartment buildings built before 1988 usually don't have their utilities
separated by unit, so fees are included in the rent, said Lauren Brockman,
president of the apartment association. Newer buildings offer units with
individual meters. 
Increased labor costs also contribute to higher rents. 
"The tight labor market has increased the costs of personnel and put
pressure on our employment costs," Brockman said. He estimated that labor
costs at his own company, Bradley Apartment Homes, increased more than 20
percent in the past two years. 
Von Stroh said new amenities, including fitness and business centers, island
kitchens, and high-speed Internet access, increase the cost for developers
and drive up rents. 
Metro-area vacancy rates also remained low despite the increase in rent. 
The vacancy rate for apartments in the metro area was 4.7 percent for the
fourth quarter of 2000, according to the report. That was up from 3.7
percent in the third quarter and down from 5.2 percent in the fourth quarter
of 1999. 
A 5 percent vacancy rate represents equilibrium in the apartment market,
according to industry experts. They said the slight increase in vacancy
since the third quarter was expected, as cold weather and approaching
holidays kept many people from moving between November and January. 
"People don't want to move in the winter unless they really have to," Von
Stroh said. 
An increase in the number of new apartments on the market also influenced
the fourth-quarter vacancy rate. 
Nearly half - 2,565 - of the new 5,626 apartment units constructed in 2000
were completed in the fourth quarter, Von Stroh said. 
The end of the year is a less-than-ideal time for builders to complete their
projects, but labor shortages and delays in getting projects approved pushed
many developments past their time lines, said Jamie Glonek, who handles
government affairs for the apartment association. 
Douglas County boasted the largest number of new apartment units completed
in the fourth quarter. The 909 new units also drove Douglas County's vacancy
rate to 15.5 percent - the highest in the metro area. 
"It's not a reflection of the economy; it just takes time to put people in
there," said Jerry Kendall, an apartment broker for Cushman & Wakefield.
"You could have people lined up at the door, but you can't get them all
moved in right away." 
Kendall recently surveyed the metro-area apartment market and found a total
of 9,669 new units, with an estimated value of $966 million completed in
1999 and 2000. 
An additional 14,112 units are under construction, and 18,531 units are
proposed, he said. 
While a softening of the apartment market might not be what developers want,
it could provide a welcome benefit to renters by causing rents to level off,
experts said. 
Copyright 2001 The Denver Post. All rights reserved.


Douglas Bohm 303.525.2962 doug@denverradio.org <mailto:doug@denverradio.org>

Denver Radio Coalition <http://denverradio.org/>  303.832.8628
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