Colorado Springs apartment vacancies hit 12-year low as rent hits all-time high
During the second quarter this year, the average apartment rent in the Colorado Springs metro area rose to an all-time high while the apartment vacancy rate fell to the lowest rate reported since the third quarter of 2001.
According to a report released today by the Colorado Division of Housing and the Apartment Association of Southern Colorado, the average rent in the Colorado Springs metro area rose year over year for the fourteenth quarter in a row during the second quarter, climbing 3.9 percent to $807. The second-quarter average rent was up from $776 reported during 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.”
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.
Vacancy rates for all market areas during the second quarter were: Northwest, 4.6 percent; Northeast, 4.0 percent; Far Northeast, 5.5 percent, Southeast, 8.0 percent; Security/Widefield/Fountain, 5.9 percent; Southwest, 4.4 percent; Central, 5.6 percent.
Apartment Realty Advisors is also a major sponsor of this report. The Vacancy and Rent Surveys are a service provided by the Colorado Department of Local Affairs’ Colorado Division of Housing and the Apartment Association of Southern Colorado to renters and the multi-family housing industry on a quarterly basis. The Colorado Springs Area Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. For more information, please see the Division of Housing’s economics blog at www.divisionofhousing.com.