Apartment rental rates in the Colorado Springs area continued to rise in the second quarter, as vacancy rates fell to the lowest level in more than a decade, according to a report released today.
The average rent in the Colorado Springs area rose year-over- year for the 10th quarter in a row, climbing 2.3 percent during the second quarter to $776, shows the report by the Colorado Division of Housing and the Apartment Association of Southern Colorado,.
The average rent for the region was up from $759 reported during the second quarter of last year. It also was up from 2012’s first-quarter average rent of $754.
The average rent increased year-over-year in all sub-markets measured during the second quarter except the Southeast region where the average rent fell 5.1 percent to $638. The average rent increased the most in the Security/Widefield/Fountain region where it was up 7.9 percent, year over year, to $622.
“The rent growth in the metro area continues, but the rate of increase has fallen off recently,” said Ron Throupe, a professor of real estate at the University of Denver’s Burns School of Real Estate and Construction Management, and the report’s author. “The weak employment situation in the region is not ideal for pushing rents, so we’re seeing some moderation there.”
Average rents for all market areas were:
- Northwest, $851.
- Northeast, $755.
- Far Northeast, $886.
- Southeast, $638.
- Security/Widefield/Fountain, $622.
- Southwest, $783.
- Central, $738.
The apartment vacancy rate in the Colorado Springs metro area fell to 6.0 percent during the second quarter, falling from last year’s second-quarter vacancy rate of 6.4 percent.
This year’s second-quarter rate was also down from the first-quarter rate which was 6.4 percent.
The vacancy rate declined year over year in the Northwest, Far Northeast, Southeast and Security/Widefield/Fountain areas of Colorado Springs, while the vacancy rate increased during the same period in the Northwest, Southwest and Central areas.
The largest decreases in vacancies are found in the Southeast region of the metro area and in the Security/Widefield/Fountain area. In both areas, vacancies rates were often found to be 15 percent or more over the past decade, but in recent quarters the vacancy rate in both areas has fallen below 10 percent.
“The vacancy rate during the second quarter was one of the lowest we’ve seen in Colorado Springs since 2001,” said Ryan McMaken, a spokesman for the Colorado Division of Housing. “The rate is hovering around 6 percent right now, which is significantly lower than the eight-to-twelve percent vacancies we saw regularly from 2003 to 2009.”
Vacancy rates for all market areas were:
- Northwest, 4.4 percent.
- Northeast, 6.7 percent.
- Far Northeast, 4.8 percent.
- Southeast, 8.8 percent.
- Security/Widefield/Fountain, 3.6 percent.
- Southwest, 5.1 percent.
- Central, 8.0 percent.
ARA, formerly known as Apartment Realty Advisors, also is a major sponsor of this report with the Colorado Division of Housing and the Apartment Association of Southern Colorado. For more information, please see the Division of Housing’s economics blog.
If you would rather buy than rent in Colorado Springs, please visit COhomefinder.com.
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