The apartment-vacancy rate in the Denver area increased to 6.2 percent during the second quarter, up from 5.9 percent during the first quarter this year.
The vacancy rate is the same as the second quarter of last year, according to a report released Wednesday by the Apartment Association of Metro Denver and the Colorado Department of Local Affairs’ Division of Housing.
The average rental rate increased to $886, up from $861 for the first quarter and from $864 for the second quarter of last year.
“The apartment market has been strong,” said Steve Rahe, first vice president of the multi-housing group and CB Rich ard Ellis. “Owners are raising rents, and that’s pushing vacancy up.”
But owners are still giving concessions and discounts, pushing the economic vacancy rate to 18.3 percent, up from 16.6 percent in the first quarter, said Kathi Williams, director of the Division of Housing. Economic vacancy is the vacancies plus concessions and discounts as a percent of gross potential rent.
Vacancies have remained essentially flat over the past three quarters. They haven’t dropped below 5 percent since the first quarter of 2001. They peaked at 13.1 percent during the first half of 2003.
All metro Denver counties except Arapahoe reported slight increases in vacancies since the first quarter.
Douglas County reported the highest vacancy rate at 8.3 percent, and Denver County reported the lowest, 5.7 percent.
Vacancy rates for the other counties surveyed were: Adams, 6.8 percent; Arapahoe, 5.9 percent; Boulder/Broomfield, 6.4 percent; and Jefferson, 6.0 percent.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
