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The apartment vacancy rate in the Colorado Springs metro area fell to 5.8 percent during the first quarter of 2011, falling to the lowest first-quarter vacancy rate reported since 2001. According to a report released today by the Apartment Association of Southern Colorado and the Colorado Division of Housing, the vacancy rate in the Colorado Springs area fell 15.7 percent year over year from 2010’s first-quarter rate of 6.9 percent. The vacancy rate also dropped from 2010’s fourth quarter rate of 7.2 percent, as expected. Seasonal factors generally lead to a falling vacancy rate from the fourth quarter to first quarter.
The first quarter’s drop in the vacancy rate is the eighth quarter in a row in which the vacancy rate has fallen when compared to the same period a year earlier.
Year over year, vacancy rates fell the most in the “Southwest” market area of Colorado Springs where vacancy rates fell 35 percent from 5.1 percent to 3.3 percent. Vacancy rates were lowest in the Northwest and Southwest market areas with rates of 3.6 percent and 3.3 percent, respectively.
Vacancy rates for all market areas were: Northwest, 3.6 percent; Northeast, 6.5 percent; Far Northeast, 5.5 percent, Southeast, 7.0 percent; Security/Widefield/Fountain, 16.2 percent; Southwest, 3.3 percent; Central, 6.3 percent.
As vacancy rates moved down, the area’s average rent increased. 2011’s first-quarter average rent rose 3.7 percent to $737.00 from 2010’s first-quarter average rent of $710.07. In individual market areas, the average rent rose year over year in all areas except the Southeast and the Security/Wifefield/Fountain areas. The area with the largest year-over-year increase in the average rent was the Central region with an increase of 10.6 percent from $649.88 to $719.37. The average rent dropped the most in the Security/Widefield/Fountain area where the average rent fell 5.7 percent from $603.58 during 2010’s first quarter to $568.86 during the first quarter of this year.
Average rents for all market areas were: Northwest, $839.62; Northeast, $721.48; Far Northeast, $832.69, Southeast, $598.42; Security/Widefield/Fountain, $668.86; Southwest, $765.09; Central, $719.37.