The average rent in the Colorado Springs metro area rose year over year for the ninth quarter in a row during the first quarter of 2012, climbing 2.4 percent to $754. 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 $737 reported during the first quarter of 2011, and was down from 2011’s fourth-quarter average rent of $775.
The median rent also rose year over year to $728 during the first quarter, rising 1.9 percent from 2011’s first-quarter median rent of $714.
The average rent increased year over year in all sub-markets measured during the first quarter except in the Central region and the Northwest region where rents declined 1.8 percent and 6.4 percent, respectively.
The average rent increased the most in the Security/Widefield/Fountain region where the average rent rose 8.2 percent year over year to $615.
“The rent growth for the first quarter was not robust in many areas, but it did continue an established trend in rent growth which has been in place since early 2010,” said Ryan McMaken, spokesman for the Colorado Division of Housing. “Employment growth has been pretty sedate in the region, and that can put some downward pressure on rents.”
Average rents for all market areas were: Northwest, $785; Northeast, $745; Far Northeast, $846, Southeast, $644; Security/Widefield/Fountain, $615; Southwest, $796; Central, $706.
The apartment vacancy rate in the Colorado Springs metro area rose year over year to 6.4 percent during the first quarter of 2012, rising from 2011’s first-quarter vacancy rate of 5.8 percent, which was a ten-year low. The first-quarter rate fell from last year’s fourth-quarter rate of 6.7 percent.
For the first quarter, the vacancy rate declined year over year in the Northeast and Central regions, and in the Security/Widefield/Fountain area where the vacancy rate plummeted from 16.2 percent to 5.3 percent, year over year.
“It’s significant that the vacancy rate really fell off in the Security-Widefield area and in the central region,” said Ryan McMaken, a spokesman for the Colorado Division of Housing. “Those areas also have some of the lowest average rents right now, so as rents increase metro-wide, we’re seeing a movement of tenants into the lower-rent areas.”