The statewide apartment-vacancy rate for the first quarter this year increased to its highest level since 2005, according to a report released Thursday.
The vacancy rate rose to 8.5 percent, up from 6.1 percent a year ago, according to the report released by the Colorado Division of Housing.
“I think you can correlate it strongly with the unemployment rate,” said Gordon Von Stroh, management professor at the University of Denver’s Daniels College of Business.
People who are out of work are moving back home with their parents or finding roommates, Von Stroh said.
Still, the rising vacancy rate is not alarming, said Ryan McMaken of the Housing Division.
“There’s not a lot of new construction, and the population is still growing,” he said.
Only four of the 22 areas surveyed reported declining vacancies: Fort Collins, southeastern Colorado, Steamboat Springs and Summit County.
On the Front Range, Colorado Springs reported the highest vacancy rate at 11.7 percent, compared with 9 percent a year ago. Pueblo’s vacancy rate increased from 6 percent last year to 7.4 percent.
Meanwhile, the report shows the average monthly rental increased to $844 from $823 a year ago. That’s not enough to keep pace with the rising cost of doing business, Von Stroh said.
“The concern I have is that when we don’t have that rent growth and costs are increasing, we’re going to see deferred maintenance,” he said. “That’s not good for the community, the investor or the resident.”
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
