As reported today, the apartment vacancy rate in the Colorado Springs area during the second quarter was down to 6.0 percent during the second quarter, falling from 6.4 percent durign teh second quarter of last year and 6.4 percent during the first quarter of this year. the first graph shows that the metro-wide vacancy rate is now at a ten-year low, dropping off from the past decade elevated vacancy rates. The region has not yet returned to the vacancy rates seen before the 2002 dot-com bust however.
The second graph shows the vacancy rates by submarket within the region. The overall trend is downward in vacancies, and we can see that one of the biggest factors in keeping the metro-wide vacancy rate as high we it was through 2007 and 2008 were the very high vacancy rates seen in the Southeast region and the Security/Widefield/Fountain area. We're now starting to see vacancies really fall off in those two submarket, likely being driven by a flight to affordability in apartments.
The fourth graph shows the percentage change in the averag rent for the Colorado Springs area. The second quarter's growth of 2.3 percent is a rather moderate rate, and shows some slowing over the past two quarters. Nevertheless, there has been year over year growth for the past ten quarters which is the most sustained growth we've seen since 2001.
The fifth graph shows average rents broken out by market area. The high-rent areas are the Northwest and Far Northeast areas while the low-rent areas are Southeast, Central, and the Security/Widefield/Fountain areas. The Central region has seen some of the strongest growth in recent years while the Security/Widefield/Fountain area has been largely flat in its rents. Recent declines in vacancies in southern areas of the Colorado Springs are may drive more growth in the future.