Demand for affordable rental housing in Colorado increased during the fourth quarter, resulting in higher rents and fewer incentives, according to a report released Tuesday.
Vacancy rates dropped to 5.9 percent, compared with 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. During the fourth quarter of 2006, the vacancy rate was 5.2 percent and median rent was $680.
“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 housing tracked in the survey has deed or income restrictions that require it to be affordable to those earning 30 percent to 80 percent of area median income.
Gordon Von Stroh, professor of management at the University of Denver, said that since 9/11, some apartments that were not restricted were priced to be competitive with affordable housing.
“But as prices go up and vacancies go down, those residents will move to more traditional affordable housing,” he said.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
