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Vacancies in “affordable” rental housing rises to 6.4 percent
Statewide vacancies in subsidized and rent-restricted housing rose to 6.4 percent during the second quarter, according to a report released today by the Colorado Department of Local Affairs’ Division of Housing. Second-quarter vacancies fell from the first quarter rate of 7.4 percent, and are up from a rate of 6.1 percent reported during the second quarter of last year.
According to the report, the areas with the lowest vacancies were Grand Junction and Arapahoe County which reported vacancy rates of 3.2 percent and 3.7 percent respectively. The areas with the highest vacancy rates were Colorado Springs and Jefferson County which reported vacancy rates of 7.6 percent and 11.7 percent respectively.
In general, a vacancy rate of 5 percent is considered the “equilibrium” rate by industry experts.
Each quarter, the Colorado Division of Housing also releases a “market-rate” vacancy survey that does not include subsidized and deed-restricted units. Second-quarter market-rate data showed a statewide vacancy rate of 9.1 percent.
“It is often helpful to look at the differences between the market-rate vacancies and the affordable vacancies,” said Gordon Von Stroh, Professor of Business at the University of Denver, and the report author. “The market-rate units and the affordable units should not be attracting the same households.”
The Colorado Division of Housing monitors vacancies in subsidized and rent-restricted units on a quarterly basis. The report is available online at: http://dola.colorado.gov/cdh