The average rent in the Colorado Springs metro area rose year over year for the twelfth quarter in a row during the fourth quarter of 2012, climbing 2.0 percent to $790. According to a report released today by the Colorado Division of Housing and the Apartment Association of Southern Colorado, the average rent for the region during the fourth quarter this year was up from $775 reported during the fourth quarter of 2011, and was up from 2012’s third-quarter average rent of $787.
The median rent rose year over year to $766 during the fourth quarter, rising 3.2 percent from 2011’s fourth-quarter median rent of $742.
The average rent increased year over year in the Northwest, Southwest and Central regions. All other submarkets reported drops in the average rent, compared year over year for the fourth quarter. The largest drop in average rent was found in the Northeast region where the average rent dropped 2.9 percent. The largest increase in the average rent was found in the Central region where the average rent increased 2.6 percent, year over year. The Far Northeast was the submarket with the highest average rent at $880 during the fourth quarter of 2012. During the same period, the lowest average rent was found in the Security/Widefield/Fountain submarket where the average rent was $598.
“The average rent hit a new all-time high for the region during the fourth quarter, but there are nevertheless signs of softness in the market,” said Ryan McMaken, economist for the Colorado Division of Housing. “The rental increases were not large during the fourth quarter, but vacancy rates inched up in the fourth quarter, possibly in response to rent growth.”
Average rents for all market areas during the fourth quarter of 2012 were: Northwest, $841; Northeast, $721; Far Northeast, $880, Southeast, $704; Security/Widefield/Fountain, $598; Southwest, $808; Central, $718.
The apartment vacancy rate in the Colorado Springs metro area rose year over year to 7.1 percent during the fourth quarter of 2012, rising from last year’s fourth-quarter vacancy rate of 6.7 percent. 2012’s fourth-quarter rate also rose from the third-quarter rate of 6.1 percent.
From the fourth quarter of 2011 to the fourth quarter of 2012, the vacancy rate fell in the Northwest, Southeast, Central and Security/Widefield/Fountain submarkets. During the same period, the vacancy rate rose in the Northeast, Far Northeast and Southeast submarkets.
Vacancy rates for all market areas were: Northwest, 4.2 percent; Northeast, 5.6 percent; Far Northeast, 6.6 percent, Southeast, 10.1 percent; Security/Widefield/Fountain, 2.6 percent; Southwest, 4.7 percent; Central, 6.5 percent.