Demand for affordable rental housing in Colorado increased during the fourth quarter, resulting in higher rents and fewer incentives, according to a report released today.
Vacancy rates dropped to 5.9 percent compared to 6.4 percent during the third quarter, according to the report released by the Colorado Housing and Finance Authority and the Colorado Division of Housing. The statewide median rent increased 3.5 percent to $682.
“The affordable housing industry is getting healthier as vacancies drop, rates go up and concessions decline,” said Steve Wessler of Red Stone Agency Lending. “The ability of owners to increase profits is getting better. Hopefully, it will allow for the underwriting of some new projects to ease the crunch for lower-income households.”
The lowest rents were found in buildings constructed before 1959 at $566 a month and in buildings with nine to 50 units at $605 a month. The average rent per square foot was 88 cents.
“Since 911, the low B and C properties have been able to compete with affordable housing, but as prices go up and vacancies go down, those residents will move to more traditional affordable housing,” said Gordon Von Stroh, professor of management at the University of Denver.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
