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Colorado Springs area vacancies fall to 7-year low
February 1, 2009
Apartment vacancy rates in the Colorado Springs area fell to 8.7 percent during the fourth quarter of 2009, falling to the lowest fourth-quarter rate reported since 2001. 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 10.4 percent during the fourth quarter of 2008, and are unchanged from 2009’s third quarter rate of 8.7 percent.
Fourth quarter vacancies were the lowest for the fourth quarter since vacancies were 8.9 percent in 2001, following 2000’s fourth-quarter rate of 3.1 percent.
Vacancy rates fell significantly in the “Northwest” market area of Colorado Springs where vacancy rates fell to 5.6 percent year-over-year, the lowest rate among all market areas surveyed. The rate in the Northwest region had been 9.7 percent during the third quarter of last year.
Vacancies in the “Security/Widefield/Fountain” market area fell from 24.9 percent during the fourth quarter of last year to 19.2 percent during the fourth quarter of this year.
Year-over-year, vacancies were down in all areas of the Colorado Springs metro area with the exception of central Colorado Springs where vacancies increased from 8.5 percent to 9.2 percent.
“Increases in the local troop population are now being felt here in Colorado Springs, said Gordon Von Stroh, professor of Business at the University of Denver, and the report’s author. “There has been very little recent new construction of multifamily units in the area, so we should see what supply we do have begin to fill up fairly quickly if troop numbers don’t fall again.”
In spite of increasing demand for units, average rents have not shown large increases. The average rent for the fourth quarter of 2009 was $711.66, which is down two dollars from 2008’s fourth-quarter average rent of $713.28. The average rent was $703.82 during the fourth quarter of 2007.
“Average rents have increased by eight dollars since 2007, but during that same period, employment has fallen and the unemployment rate has increased from 4.9 percent to 7.9 percent” said Ryan McMaken, a spokesman for the Colorado Division of Housing. “However, if vacancies continue to fall, we’ll start to see some significant rent growth for the first time in several years.”
The area that reported the highest average rents was the “Far northeast” region with an average rent of $836.58, and the area with the lowest average rent was the “Central” region with an average rent of $565.54.
Apartment Realty Advisors is also a major sponsor of this report. 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/