Vacancies for metro-area rental houses have risen to their highest level since 2006, according to a report released Thursday.
The vacancy rate for properties ranging from single-family homes to fourplexes in the Denver area rose to 5.2 percent during the second quarter, up from 4.2 percent for the same time last year, according to the survey by the Colorado Division of Housing.
Two factors are contributing to the increase. First, there are more single-family houses being added to the rental pool because people can’t sell their homes and “fix-and- flippers” are putting their investment properties on the market. Second, the first-time-homebuyer tax credit is helping people who otherwise would rent to purchase homes.
“There’s a big increase in supply, and demand is not changing,” said Bob Alldredege of property-management firm Jericho Properties.
The rental-house figure echoes a trend found in the multifamily vacancy rate in metro Denver and statewide.
Apartment vacancies in metro Denver reached a four-year high of 9 percent for the second quarter. Apartment vacancies in communities outside metro Denver climbed to 9.1 percent in the second quarter, also the highest level in four years.
The Division of Housing data are based on surveys of apartment owners and property managers.
All counties reported increased vacancies in small properties compared with last year, as well as with the first quarter. In Adams County, the vacancy rate was 8.3 percent; Arapahoe, 4.4 percent; Boulder/Broomfield, 5.9 percent; Denver, 5.2 percent; Douglas, 3.5 percent; and Jefferson, 5.3 percent.
Meanwhile, average rents also are up, but that’s a trend that’s expected to reverse during the next quarter, said Susan Melton of Assured Management.
The metrowide average rent increased to $1,016 during the second quarter, up from $994 during the same period a year ago.
“Our vacancy rate has inched up each month since last year,” Melton said. “It’s worse in the July-August months, and we’ve definitely had to lower rents to get properties rented.”
One reason for the rent increase during the second quarter is that the properties hitting the rental market are higher-end, Alldredege said.
“It doesn’t take a lot to move the average rent up,” he said.
Margaret Jackson: 303-954-1473 or mjackson@denverpost.com
Metro vacancy rates
Adams County 8.3% • Arapahoe 4.4% • Boulder/Broomfield 5.9% • Denver 5.2% • Douglas 3.5% • Jefferson 5.3%
