Metro Denver apartment vacancies rise to 4-year high
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Apartment vacancy rates rose in the Denver Metro for the sixth quarter in a row, and are now at their highest level in four years. According to a report released Thursday by the Apartment Association of Metro Denver and the Department of Local Affairs' Division of Housing, vacancy rates during the second quarter of 2009 increased to 9.0 percent from last year's second quarter rate of 6.2 percent. Vacancies are at their highest rate since they reached 9.3 percent during the first quarter of 2005.
The vacancy rate was 8.4 percent during the first quarter of this year.
Vacancies have been rising each quarter since the first quarter of 2008. Vacancies peaked at 13.1 percent during the first half of 2003, eventually fell to 5.3 percent during the third quarter of 2007, and have generally increased since.
Arapahoe County reported the highest vacancy rate of 10.7 percent, and Douglas County reported the lowest rate at 5.8 percent. All counties except Douglas County reported increases in vacancies when compared to the second quarter of last year. Vacancy rates for all counties surveyed were: Adams, 8.5 percent; Arapahoe, 10.7 percent; Boulder/Broomfield, 7.2 percent; Denver, 9.8 percent; Douglas, 5.8 percent; and Jefferson, 7.2 percent.
In general, a vacancy rate of 5 percent is considered the "equilibrium" rate. Rates below 5 percent indicate tight markets.
During the second quarter of 2009, average rents fell to $870.37 when compared to $886.14 from the second quarter of last year. Average rents are at their lowest since the first quarter of 2008 when they were $861.26.
When compared to the second quarter of 2008, Only the Boulder/Broomfield area reported an increase in overall average rents. Adams, Arapahoe, Denver, Douglas, and Jefferson counties all reported decreases in overall average rents.
The highest average rent was reported in Douglas County at $999.55, and the lowest was reported in Jefferson County at $812.41. Average rents for all counties were: Adams, $884.23; Arapahoe, $828.46; Boulder/Broomfield, $967.19; Denver, $881.37; Douglas, $999.55; and Jefferson, $812.41.
The linked data is only the most basic information. For the full report containing hundreds of pages of detailed rental housing data, please visit the Apartment Association of Metro Denver: http://www.aamdhq.org/