Click here for the report.
The average rent in the Colorado Springs metro area hit a new high during the second quarter of 2011, climbing 5.5 percent, year over year, to $759. According to a new report on apartment rents and vacancies, released today by the Colorado Division of Housing and the Apartment Association of Southern Colorado, the average rent for the region was up from $719 reported during the second quarter of 2010, and was up from 2011’s first quarter average rent of $737.
The median rent also hit an all-time high of $740 during the second quarter, rising from 2010’s second-quarter median rent of $684.
The average rent increased in all types of apartments measured, including all types of units from efficiency apartments to three-bedroom apartments.
The average rent also increased in all sub-markets measured during the second quarter except in Security/Widefield/Fountain where the average rent dropped from $615 to $577, year over year. The average rent in the Northwest region of Colorado Springs, on the other hand, increased 67 dollars from $765 during last year’s second quarter, to $832 during the same period this year.
“The second quarter of this year continues a trend of solid rent growth in the area,” said Gordon Von Stroh, a professor of business at the University of Denver, and the report’s author. “Growth in both the average rent and the median rent has outpaced inflation over the past year, so we’re seeing some real growth which was expected now that many vacancy rates in the area have been cut in half over the past couple of years.”
Average rents for all market areas were: Northwest, $832; Northeast, $727; Far Northeast, $848, Southeast, $673; Security/Widefield/Fountain, $577; Southwest, $781; Central, $720.
The apartment vacancy rate in the Colorado Springs metro area rose to 6.4 percent during the second quarter of 2011, rising from 2010’s second-quarter vacancy rate of 5.8 percent. The second-quarter rate increased from this year’s first quarter rate which was also 5.8 percent, and a ten-year low.
The vacancy rate declined in the Northwest, Northeast and Central areas of Colorado Springs, while the vacancy rate increased in Far Northeast, Southeast, Southwest and the Security/Widefield/Fountain area.
Vacancy rates for all market areas were: Northwest, 5.8 percent; Northeast, 5.4 percent; Far Northeast, 7.5 percent, Southeast, 9.0 percent; Security/Widefield/Fountain, 15.0 percent; Southwest, 4.8 percent; Central, 4.3 percent.
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 see the Division of Housing’s economics blog at www.divisionofhousing.com.
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