The statewide apartment-vacancy rate rose to 8 percent during the fourth quarter, driven largely by increases in Greeley, Grand Junction, Loveland and metro Denver.
In Greeley, the vacancy rate increased from 7.2 percent during the fourth quarter of 2007 to 8.1 percent in the same period last year. In Loveland, it went from 5.6 percent to 6.1 percent.
In Grand Junction, the rate rose from 2.4 percent to 3.1 percent, largely because there are fewer oil and gas workers renting apartments, said Gordon Von Stroh, professor of management at the University of Denver Daniels College of Business.
“The price of oil is going down, and there’s just lesser demand for oil and gas exploration,” he said.
Another reason vacancies are rising is because renters are doubling up or moving in with their parents to save money, said Terrence Hunt, a broker with Apartment Realty Advisors.
“The market is softening, but we’re not losing residents in Colorado,” he said.
Rates were stable in Pueblo, where vacancies increased from 7.1 percent during the fourth quarter of 2007 to 7.2 percent during the same quarter last year.
Colorado Springs and Fort Collins were the only areas to experience falling vacancies. Colorado Springs’ vacancy rate dropped from 10.8 percent to 10.4 percent year over year, and Fort Collins’ vacancy dropped from 4.4 percent to 4.2 percent in the same period.
Average rents increased in all areas but Greeley and Loveland. Average rents dropped in Greeley from $632 to $629 and in Loveland from $862 to $850.
The average increase was 10 percent in Grand Junction and Pueblo.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
