The vacancy rate for apartments in Colorado fell during the second quarter to 5.2 percent – the lowest rate recorded since the first quarter of 2001 when the rate was 4.3 percent.
The statewide vacancy rate was 6.2 percent during the second quarter of 2010 and the rate was 5.5 percent during the first quarter of 2011, according to a vacancy and rent survey by the Colorado Division of Housing.
The declines were reflected in vacancy rate drops in the Denver metro area, Fort Collins-Loveland, Pueblo and Grand Junction.
The low vacancy rate has resulted in substantial rent hikes.
The statewide average rent in Colorado increased two percent from the second quarter of 2010 to the second quarter of 2011, rising from $862 to $877.
Among Colorado’s metro areas, the largest drop in vacancies was in Grand Junction where the vacancy rate fell from 8.9 percent during the second quarter of 2010 to 6.3 percent for the second quarter of 2011.
The Denver metro area vacancy rate fell year-over-year from 6.1 percent to 4.8 percent.
Ryan McMaken, Colorado Division of Housing spokesman, said that although there were some small increases in the vacancy rate in places like Colorado Springs and Greeley, the bigger picture shows the state moving toward fewer vacancies.
“The Denver area and northern Colorado have some of the tightest markets right now, and not surprisingly, in those areas we’re also seeing some of the most sustained growth in rent in recent quarters,” said McMaken.
Growth in rents varied considerably. The average rent in Colorado Springs increased 5.9 percent year over year, while the average rent in Pueblo fell 5.4 percent.
During the same period, the average rent in Greeley increased 5.1 percent while the average rent in Fort Collins grew at a much lower 0.8 percent.
Average rents in metro areas were Colorado Springs, $761; Fort Collins/Loveland, $882; Grand Junction, $631; Greeley, $649 and Pueblo, $512.
The metro Denver average was $915 during the second quarter.
Analysts told The Denver Post last month that after Sept. 11, 2001 the housing market in the Denver area was slammed and then with the financial market collapse, the building of new rental units came to halt.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.
