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Apartment vacancy rates in the Colorado Springs area fell to 8.7 percent during the third quarter of 2009, led by sharp drops in average vacancies in southwestern Colorado Springs and in the Security/Widefield/Fountain area.
According to a report released today by the Apartment Association of Southern Colorado and the Colorado Department of Local Affairs - Division of Housing, overall vacancies fell in the Colorado Springs area from 9.2 percent during the third quarter of last year, and are down from this year’s second-quarter rate of 9.8 percent.
Vacancy rates fell significantly in the “Southwest” market area of Colorado Springs where vacancy rates fell to 5.3 percent, the lowest rate among all market areas surveyed. The rate in the Southwest region had been 9.4 percent during the third quarter of last year.
Vacancies in the “Security/Widefield/Fountain” market area fell from 24.4 percent during the third quarter of last year to 16.9 percent during the third quarter of this year.
Vacancy rates rose slightly in the “Far Northeast” market area, rising from last year’s third quarter rate of 6.4 percent, to 7.8 percent during the third quarter of this year. Rates also rose in the “Southeast” market area where rates rose from 14.4 percent to 20.5 percent during the same period.
Vacancy rates continue to be buoyed by high vacancies in apartment projects of 9 to 50 units where vacancies have increased over the last year, and now stand at 16.8 percent.
Colorado Springs vacancy rates have fallen .5 percent over the last year as rates across the rest of the Front Range have risen. Metro Denver’s second-quarter vacancy rate was 9.0, and rates in Greeley and Pueblo have also recently risen above 8 percent.
In general, a vacancy rate of 5 percent is considered an “equilibrium rate.”
In spite of falling vacancy rates, rent growth in Colorado Springs has been very limited. Comparing year-over-year, the third-quarter average rent level fell almost 4 dollars to $695.40 from $699.09. Third quarter rent levels are also below 2007’s third quarter average rent of $703.74.
The overall average rent level hit an all-time high during the second quarter of this year when they hit $717.65
The area that reported the highest average rents was the “Far northeast” region with an average rent of $801.54, and the areas with the lowest average rent was the “Central” region with an average rent of $513.38.
The Vacancy and Rent Surveys are a service provided by the Colorado Department of Local Affairs’ Colorado Division of Housing and the Apartment Association of Southern Colorado to renters and the multi-family housing industry on a quarterly basis. The Colorado Springs Area 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. For more information, please contact the Apartment Association of Southern Colorado at http://www.aacshq.org ; or please visit the Colorado Division of Housing web site: http://dola.colorado.gov/cdh/