Friday, December 10, 2010

Single-family rental vacancies fall to new lows

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Vacancies in for-rent condos, single-family homes, and other small properties across metro Denver fell year-over-year to 2.9 percent during 2010’s third quarter. According to a report released Tuesday by the Colorado Division of Housing, the vacancy rate was 4.6 percent during the third quarter of 2009, and was 3.8 percent during the second quarter of this year. The third quarter’s vacancy rate is the lowest third-quarter rate reported since the report was started in 2001.

The average number of days on the market for single-family rentals and similar properties fell from 41.0 days during the third quarter of 2009 to 36.0 days during the third quarter of 2010. The number of days on the market also fell from this year’s second quarter average of 47.2 days. The third quarter’s average is the lowest average since the report began tracking days on the market in 2004.

The lowest vacancy rates were found in the Boulder/Broomfield area and in Jefferson County where average vacancy rates were 1.4 percent and 1.8 percent, respectively. The highest vacancy rate was found in Douglas county where the rate was 5.2 percent.

Vacancy rates for all counties surveyed were: Adams, 3.4 percent; Arapahoe, 3.1 percent; Boulder/Broomfield, 1.4 percent; Denver, 3.2 percent; Douglas, 5.2 percent; and Jefferson, 1.8 percent.

In spite of increasing demand for units, average rents fell in some counties.

The average rent for single-family and similar properties in the metro area fell year-over-year to $1041.05 during 2010’s third quarter, falling from 2009’s third-quarter rate of $1059.77. The third quarter’s average rent was up from this year’s second-quarter average rent of $1027.78. Metro-wide, rent per square foot also fell slightly, year-over-year, falling from 85 cents during the third quarter of 2009, to 83 cents during the third quarter of this year.

Average rents for all counties were: Adams, $1121.34; Arapahoe, $1015.71; Boulder/Broomfield, $1635.90; Denver, $969.47; Douglas, $1404.44; and Jefferson, $981.09.

The Colorado Statewide Vacancy and Rent Study is released each quarter by the Colorado Division of Housing. 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.