- Colorado Division of Housing releases report.
- Average rent at record levels.
- Vacancies near all-time low.
Apartment rents in Colorado Springs rose to an all-time high in the second quarter, according to a report released today by the Colorado Division of Housing.
The apartment vacancy, meanwhile, fell to the lowest rates since the third quarter of 2001.
The report by the housing division and the Apartment Association of Southern Colorado, showed the average monthly rent in the Colorado Springs metro area rose year-over-year for the 14th consecutive quarter during the second quarter, climbing 3.9 percent to $807.
The second-quarter average rent was up from $776 in the second quarter of 2012, and was up from this year’s first-quarter average rent of $787.
The average rent increased year over year in all regions except the Northeast where the average rent was flat. The largest increase in the average rent for any region of the Colorado Springs area was found in the Southeast where the average rent increased 12.2 percent from $638 during the second quarter of last year to $717 during the same period of this year.
The Security/Widefield/Fountain regional also reported a sizable increase in the average rent, with an increase of 6.6 percent from $622 during the second quarter of last year to $664 during the second quarter of this year.
Average rents for all market areas during the second quarter of this year were: Northwest, $872; Northeast, $753; Far Northeast, $901, Southeast, $717; Security/Widefield/Fountain, $664; Southwest, $821; Central, $777.
“Rent growth had softened during 2012, but the market has clearly tightened again so far this year,” said Ryan McMaken, economist for the Colorado Division of Housing.
“A decline in regional unemployment mixed with fairly modest amounts of new home construction has helped drive down vacancy rates and push up rents,” he added.
The apartment vacancy rate in the Colorado Springs metro area fell year over year to 5.4 percent during the second quarter of 2013, falling from this year’s first-quarter vacancy rate of 5.6 percent, and falling from last year’s second-quarter rate of 6.0 percent.
From the second quarter of 2012 to the second quarter of 2013, the vacancy rate fell in the Northeast, Southeast, Southwest, and Central submarkets. During the same period, the vacancy rate rose in the Northwest, Far Northeast and Security/Widefield/Fountain submarkets.
Vacancy rates in the Security/Widefield/Fountain, Southeast, and Central regions have all fallen significantly since 2009 when all three regions reported vacancy rates well above 10 percent.
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