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Vacancies in for-rent condos, single-family homes, and other small properties across metro Denver rose year-over-year to 5.2 percent during 2009’s second quarter. The vacancy rate was 4.2 percent during the same period last year, and was 3.6 percent during this year’s first quarter. According to a report released Thursday by the Colorado Department of Local Affairs’ Division of Housing, vacancies across metro Denver rose to levels not seen since 2006 when vacancies throughout the region generally topped five percent.
The smallest overall vacancy rates were found in Douglas County and Arapahoe County with rates of 3.5 percent and 4.4 percent respectively. The highest vacancy rates were in Adams County which reported an overall rate of 8.3 percent.
All counties reported increases in the vacancy rate from the first quarter to the second quarter of this year, and all areas reported higher vacancies during the second quarter of this year when compared to the same period last year.
Vacancy rates for all counties surveyed were: Adams, 8.3 percent; Arapahoe, 4.4 percent; Boulder/Broomfield, 5.9 percent; Denver, 5.2 percent; Douglas, 3.5 percent; and Jefferson, 5.3 percent.
In general, a vacancy rate of 5 percent is considered the “equilibrium” rate, and vacancy rates below 3 percent indicate a tight market.
Compared to multifamily vacancy rates, vacancies in single-family homes and condos remain relatively low. The metro Denver overall vacancy rate during the second quarter, measured in a separate survey, was 9.0 percent. Single-family homes, meanwhile reported a vacancy rate of 5.2 percent, and condos reported a rate of 5.4 percent.
According to the report, the metro-wide average rent increased to $1016.35 during the second quarter, up from $993.61 during the same period a year earlier. Since the first quarter of this year, rents have risen from an average of $1004.44.
Rents were highest in the Boulder/Broomfield area at $1550.79, and lowest in Denver County at $940.96. Comparing 2009’s second quarter rents to the same period last year, average rents increased in all areas except Jefferson and Douglas Counties. Comparing the first quarter to the second quarter of this year, average rents went down in Adams, Arapahoe and Jefferson Counties, and increased in Denver County, Douglas County, and in the Boulder/Broomfield area.
Average rents for all counties were: Adams, $1046.89; Arapahoe, $995.11; Boulder/Broomfield, $1550.79; Denver, $940.96; Douglas, $1388.62; and Jefferson, $978.55.
Days on the market increased from 43.4 days during the second quarter last year, to 54.7 days during the second quarter this year. During the first quarter of this year, the overall time on the market was 53.8 days. During the second quarter, single-family homes were on the market 41.8 days and condos were on the market 77.8 days.
The Colorado Statewide Vacancy and Rent Study is released each quarter by the Colorado Division of Housing. The Report is available online at the Division of Housing web site: http://dola.colorado.gov/cdh
The Colorado Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type.