Tuesday, August 16, 2011

Colorado apartment vacancy rate falls to 5.2 percent, rents rise

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The vacancy rate in Colorado apartments fell during the second quarter of 2011, dropping to the lowest rate recorded since 2001. According to a report released Tuesday by the Colorado Division of Housing, the combined vacancy rate for apartments in all of Colorado’s metropolitan areas during the second quarter was 5.2 percent. The vacancy rate was 6.2 percent during the second quarter of last year, and the rate was 5.5 percent during the first quarter of this year.

The Colorado statewide vacancy rate has not been below 5.2 percent since the first quarter of 2001 when the rate was 4.3 percent.

The year-over-year drop in the statewide rate reflects declines in the vacancy rates in the Fort Collins/Loveland area, Pueblo, Grand Junction and the metro Denver area. Vacancy rates increased slightly in Colorado Springs and Greeley, although Colorado Springs’ second-quarter vacancy rate of 6.4 percent is the second-lowest rate recorded in Colorado Springs since 2001.

Among the state’s metro areas, the largest drop was found in Grand Junction where the vacancy rate fell from 8.9 percent during the second quarter of 2010 to 6.3 percent during the same period this year.

The metro Denver vacancy rate, measured last month in a separate survey, fell year-over-year from 6.1 percent to 4.8 percent.

Vacancy rates in all metropolitan areas were Colorado Springs, 6.4 percent; Ft. Collins/Loveland, 6.3 percent; Grand Junction, 6.3 percent; Greeley, 6.7 percent; Pueblo, 9.6 percent.

The statewide average rent in Colorado increased two percent from the second quarter of last year to the second quarter of this year, rising from $862 to $877. Across metro areas in the state, however, growth in average rents varied considerably. The average rent in Colorado Springs, for example, increased 5.9 percent, year over year, while the average rent in Pueblo fell 5.4 percent. During the same period, the average rent in Greeley increased 5.1 percent while the average rent in Fort Collins grew only 0.8 percent.

The largest increase in the average rent was found in Loveland where the average rent increased 11.7 percent from the second quarter of last year to the same period this year.

Average rents in all metropolitan areas measured were Colorado Springs; $761, Ft. Collins/Loveland, $882; Grand Junction, $631; Greeley, $649; Pueblo, $512.

The metro Denver average rent, measured in a separate survey, was $915 during the second quarter.