The first graph shows the vacancy rate for the Colorado Springs metro area since 1995. The vacancy rate during the third quarter, at 5.4 percent, was tied with the second quarter at the lowest rate recorded since 2001.
The same historical pattern holds for rent per square foot, not surprisingly. During the third quarter, the rent per square foot in Colorado Springs hit 1.01, which was the first time it exceeded $1.00. The rent per square foot was up 5.2 percent year over year form the third quarter of 2012 to the third quarter of 2013.
The rent per square foot was up 5.2 percent year over year form the third quarter of 2012 to the third quarter of 2013, and we're now in a period of significant and sustained growth.
The next graph shows the average rent for all the regions of the Colorado Springs. Notice how the average rent in the central region (the brown line) has accelerated upward since 2009. Solid demand for the area combined with limited supply have propelled rents upward. From the third quarter of 2009 to the third quarter of 2013, the average rent in the central region has increased from $513 to $837.
This next graph shows the average rent adjusted for inflation and compared to the inflation-adjusted average rent in metro Denver. Note that in both cases, rents were way up at the end of the dot-com boom and then fell in real terms for several years until heading back up in 2009. Metro Denver has more or less returned to peak levels, while Colorado Springs remains below its previous peak in real terms.
The final graph shows that economic vacancy and rental losses due to concessions and delinquencies have fallen to decade-long lows, showing that effective rents are going up, and that the growth in average rent is not simply an artifact of promotional efforts.
See the report for more detailed information.