Monday, December 13, 2010

The Division of Housing in the news

Greeley rental vacancy rate is lowest since 2001 Greeley Tribune, Dec 3

Fort Collins and Greeley rank No. 1 and 2 in tightest rental vacancy rates in the state, according to a third-quarter report released today by the Colorado Division of Housing.

Greeley's vacancy rate of 3.9 percent for the quarter is the lowest rate since a 2.5 percent rate in third-quarter 2001. Fort Collins/Loveland's rate of 2.9 percent is lowest in the state and the lowest since a 2.6 percent rate in first-quarter 2001.

Industry experts say a main reason for the rental surge — besides the arrival of college students — is the aftermath of the housing bubble, which left people in mortgage distress or unable to secure loans to buy.

With vacancies shrinking — the statewide third-quarter rate was 5.5 percent — rents are expected to continue climbing.

Apartment vacancies fall, rents rise Northern Colo Business Report, Dec 2

December 2, 2010 --
DENVER - Apartment vacancies fell to recent lows in most of Northern Colorado as rents rose to new highs during the third quarter of 2010, according to a report released Thursday by the state's Division of Housing.

The lowest metro-area vacancy rate in the state was in Fort Collins, where the rate dropped to 2.8 percent from 5.5 percent, year-over-year - the lowest levels reported since first-quarter 2001, when the vacancy rate was 2.6 percent. Greeley's third-quarter vacancy rate was 3.9 percent, down from 7.4 percent a year ago, also the lowest since third-quarter 2001's 2.5 percent.

Apartment rents increase in Colorado Denver Business Journal, Dec 2

The continuing lack of major new homebuilding, as well as apartment development, helped apartment vacancies to drop and rental rates to rise in the third quarter in Colorado, according to a state housing division study released Thursday.

Statewide, the vacancy rate for apartments decreased to 5.5 percent from 6.6 percent from the first quarter. Average rent rose to $871.78 a month from $840.44 during the same period.

“The economy as well as the inability, combined with lack of desire, to buy new homes has caused home ownership rates to change in favor of rental housing. … There’s also been a lack of new supply of apartment units,” said Terrance Hunt, principal at the Denver office of Atlanta-based Apartment Realty Advisors Inc.

Apartments filling up, rents on the rise, new report shows Colo Springs Gazette, Dec 2.

Finding an apartment continued to be difficult over the past few months in the Pikes Peak region. Now, rents are on the rise, too.

The vacancy rate for apartments in Colorado Springs and surrounding areas was 6.6 percent in the third quarter of this year — up from 5.8 percent in the second quarter, but down sharply from 8.7 percent during the third quarter of 2009 and down from double-digits several years ago, according to a report released Thursday by the Colorado Division of Housing.

Rents rise in Colorado as vacancies fall Denver Post, Dec 3

5.5% state apartment rate lowest since '01

The last time that rates were lower was in the first quarter of 2001, when they stood at 4.3 percent, shows a report released today by the Colorado Division of Housing. And the last third quarter when the vacancy rate was lower was in 1999, when it stood at 3.7 percent. Vacancies fell in all Front Range metro areas except Loveland, although they did rise in Grand Junction and in several mountain areas including Summit County, Eagle County and Glenwood Springs.

The third-quarter vacancy rate of 5.5 percent reflects almost a 26 percent drop from the rate of 7.4 percent in the third-quarter of 2009.

“I think rates are going to continue to fall,” said Gordon Von Stroh, a University of Denver business professor and the author of the report, which in addition to the housing division, is sponsored by Apartment Realty Advisors and Pierce-Eislen. “Maybe not in the fourth quarter of the first quarter of 2011, but I think they will be lower in 2011. That will be especially true if we see any improvement in the job situation. Even though we’ve seen some improvement in our job situation, the unemployment rate remains relatively high.”

Even a moderate increase in demand could lead to an “extreme shortage” of rental units in the not-to-distant future, said Terrance Hunt, a broker with Apartment Realty Advisors.