The market for rental condos, single-family homes and other small properties in metro Denver remained tight in the second quarter, with a vacancy rate of 2.6 percent, new data showed.
Meanwhile, average rents for such properties increased.
The second-quarter vacancy rate was up from 1.4 percent in the first quarter but down from 3.8 percent in the second quarter of 2010, according to a report released Thursday by the Colorado Division of Housing.
“There is very solid demand for these types of properties right now,” said Robert Alldredge, principal at Jericho Properties Realty. “Although we continue to see new properties entering the market as rentals, I’d expect to see vacancies remain at low levels for at least the next 12 to 18 months.”
The vacancy rate varied among rental property types.
Triplexes had a vacancy rate of 5.1 percent, while the vacancy rate was 2.3 percent for detached houses and 3.7 percent for rental condominiums. Duplexes had the lowest rate, at 1.2 percent.
The average number of days on the market for single-family rentals and similar properties fell from 47.2 days during the second quarter of 2010 to 15.7 days during the second quarter of 2011.
Susan Melton, owner and broker at Assured Management Inc., said the number of days on the market is “quite low right now.”
“Until recently, many of these units still had rather low rents in spite of high demand. So during the second quarter, they were being picked up very quickly by renters eager to get a lease in place,” said Melton.
She predicted that as rents climb, the number of days on the market will become longer.
The highest countywide vacancy rate was found in Adams County with 4.4 percent. Denver was 1.2 percent, Douglas 2.1 and Jefferson County 3.7.
The average rent in metro Denver for a single-family and similar properties was $1,063 during the second quarter, up 3.5 percent from the second quarter of 2010.
Melton said more rental-property owners are able to get increases of 3 to 5 percent when signing new leases.
“That’s not an enormous growth, but it is more than we’ve seen in recent years,” she said.
Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com
