The vacancy rate for small rental properties – those with four or fewer units – dropped to 6.4 percent for the third quarter, down from 7.1 percent in the previous quarter, according to a report released Tuesday by the Colorado Division of Housing.
The decline is likely caused by families with children who lost their previous homes to foreclosure. They are more likely to live in rental properties that are four units or less than large apartment complexes, said Gordon Von Stroh, a management professor at the University of Denver who compiled the report.
At 7.4 percent, condos have the highest vacancy rate. In comparison, single-family houses had a 6.5 percent vacancy rate; townhouses, 5.2 percent; duplexes, 6.5 percent; triplexes, 6 percent; and fourplexes, 6.7 percent.
“Condos seem to be sensitive when there are downturns,” said Ryan McMaken of the Colorado Division of Housing. “If we end up (building) a lot of condos that aren’t in high demand, they’ll end up on the rental market.”
The average number of days any rental property stayed on the market rose to 60.4 days, from 50.1 days in the second quarter, the report found.
Average rents are up, particularly in Adams County, where big, new houses have joined the rental pool. The average monthly rent in Adams County was $1,012 in the third quarter, compared with $899 in Denver.
Staff writer Margaret Jackson can be reached at 303-954-1473 or mjackson@denverpost.com.
