The overall apartment vacancy rate for Colorado fell to 4.6 percent in the third quarter, the lowest it has been since the first quarter of 2001, when the vacancy rate stood at 4.3 percent, according to a report released today by the Colorado Division of Housing.
In the third quarter of 2011, the overall vacancy rate stood at 5 percent for the state.
Demand for rental units continued at high levels in Colorado during the third quarter, and demand was especially strong in northern Colorado.
The vacancy rate fell year over year to 2.1 percent from 2.2 percent in the Fort Collins-Loveland area for the third quarter, although it rose to 3.1 percent from 1.8 percent in Greeley from the third quarter of 2011.
A vacancy rate below five percent is generally regarded by industry observers as a sign of a tight market.
The vacancy rate dropped by half in Grand Junction, falling to 3.8 percent in the third quarter from 7.7 percent in the third quarter of 2011.
The metro Denver vacancy rate during 2012’s third quarter, released last month in a separate survey, fell year over year to 4.3 percent from 4.9 percent.
“Northern Colorado vacancies are at the low levels we saw back in the late ‘90s,” said Ron Throupe, a professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management, and the report’s author. “The strong employment in the region is helping drive that, and statewide, a lack of new construction is also an important factor.”
Rents headed up as vacancy rates declined.
The statewide average rent in Colorado increased 5.1 percent from 2011’s third quarter to 2012’s third quarter, rising from $898 to $944, which is a record high.
Across the state, the average rent increased in all metro areas except Grand Junction. The average rent in the Fort. Collins-Loveland area, for example, increased 7.3 percent, year over year, while the average rent in Pueblo grew 8.4 percent. During the same period, the average rent in Colorado Springs increased only 1.1 percent, although it reached a new all-time high during the third quarter. The average rent fell 2.6 percent in Grand Junction, year-over year.
“This is the second quarter in a row in which the average rent grew all along the Front Range and by fairly sizable amounts in most cases,” said Ryan McMaken, an economist with the Colorado Division of Housing. “Demand is strong enough to the point that even in markets where unemployment is still above eight percent, as in Pueblo and Colorado Springs, landlords were still able raise rents.”
Average rents in all metropolitan areas measured were:
- Colorado Springs; $787.
- Fort. Collins/Loveland, $1,024.
- Grand Junction, $638.
- Greeley, $693.
- Pueblo, $587.
The metro Denver average rent, measured in a separate survey, was $986 during the third quarter.
Read more on ColoradoRealEstateNews: http://insiderealestatenews.com/2012/11/colorado-apartment-vacancies-at-11-year-low/
