Apartment rental market tight in some Colorado cities
"Three years ago, there was a craze that everyone should own their own home," said Gordon Von Stroh, a University of Denver business professor and the report's author. "We are past that. We are a lot more realistic now."
Von Stroh said wages haven't gone up and that the customary down payment on the purchase price of a home is 20 percent, a significant increase from two years ago. He said many can't afford the down payment.
"The American family is strapped," Von Stroh said. "Costs are going up. To buy a new home today is a significant chunk of money."
VIDEO: Metro Denver apartment rentals harder to find, more expensive
Experts say this the toughest time in 10 years to find a rental vacancy.
"We have people on a waiting list, so it's good for landlords," said Gail Smith, part owner of Landmark Western Property Rentals.
Colorado apartment vacancy rates: Why are they so low?
According to just-released data compiled by the Colorado Division of Housing, the state's apartment vacancy rate is the lowest it's been in more than ten years. And, as this account from Inside Real Estate News points out, the rental market is particularly tight in Denver, with the average metro apartment now commanding $915 a month
Report points out need for more apartments in Fort Collins
The apartment shortage in Fort Collins won't ease until new units are built in the next year or two, according to state housing experts.
The Multifamily Housing Vacancy & Rental report released Tuesday by the Colorado Division of Housing shows just how tight the local market is.
The vacancy rate for apartments in Fort Collins/Loveland in the second quarter was 6.3 percent, down from 6.8 percent a year ago.
Colorado apartment vacancy rate hits 10-year low; rents up 2%
The highest rent increases were seen in Loveland, where rents rose 11.7 percent from the second quarter 2010 to $1,045.62.
“Northern Colorado in general has had good job growth and Loveland is at the heart of that, where we’ve seen the new hospital and more jobs in the Windsor area,” said Terrance Hunt, principal at the Denver office of Apartment Realty Advisors.