Tuesday, May 7, 2013
Colorado Springs rents grow as vacancy rates fall to 11-year low
The average rent in the Colorado Springs metro area rose year over year for the thirteenth quarter in a row during the first quarter of 2013, climbing 4.4 percent to $787. 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 first quarter this year was up from $754 reported during the first quarter of 2012, and was down slightly from 2012’s fourth-quarter average rent of $790.
The median rent rose year over year to $760 during the first quarter, rising 4.4 percent from 2012’s first-quarter median rent of $728.
The average rent increased the most in the Northwest and Southeast regions, compared year over year for the first quarter, growing 8.6 percent in the Southeast region, and 17.9 percent in the Northwest region. The largest drop in average rent was found in the Security/Widefield/Fountain region where the average rent dropped 2.3 percent. The Northwest was the submarket with the highest average rent at $927 during the first quarter of 2013. During the same period, the lowest average rent was found in the Security/Widefield/Fountain submarket where the average rent was $601.
Average rents for all market areas were: Northwest, $927; Northeast, $731; Far Northeast, $860, Southeast, $701; Security/Widefield/Fountain, $601; Southwest, $802; Central, $746.
“The market has firmed up since the fourth quarter, with the rent level stable and the vacancy rate dropping to one of the lowest rates we’ve seen since the dot-com boom,” said Ryan McMaken, economist for the Colorado Division of Housing. “Year-over-year rent growth outpaced inflation during the first quarter, but a lot continues to depend on the employment situation in the region.”
The apartment vacancy rate in the Colorado Springs metro area fell year over year to 5.6 percent during the first quarter of 2013, rising from last year’s first-quarter vacancy rate of 6.4 percent. This year’s first-quarter rate also fell from last year’s fourth-quarter rate of 7.1 percent.
From the first quarter of 2012 to the first quarter of 2013, the vacancy rate fell in the Northwest, Southeast, Southwest and Central submarkets. During the same period, the vacancy rate rose in the Northeast, Far Northeast and Security/Widefield/Fountain submarkets.
Vacancy rates for all market areas were: Northwest, 3.7 percent; Northeast, 5.6 percent; Far Northeast, 6.5 percent, Southeast, 7.3 percent; Security/Widefield/Fountain, 5.9 percent; Southwest, 4.5 percent; Central, 4.7 percent.