Apartment rents soar in northern Colorado as vacancies fall across state
Rents in Colorado rose
statewide during the first quarter of 2014, with the statewide average
rent hitting an all-time high of $1,026. According to a report released
today by the Colorado Division of Housing, the average rent during the
first quarter was up 8.0 percent from last year’s first-quarter average
rent of $950, and it was up from last year’s fourth-quarter rent of
growth was not uniform statewide. The average rent was flat in Pueblo
from the first quarter of 2013 to the first quarter of 2014. In Grand
Junction, during the same period, the average rent fell 5.2 percent. On
the other hand. rents soared in northern Colorado with the average rent
rising 17.2 percent, year over year, in Ft. Collins, and 12.6 percent in
Average rents in all metropolitan areas measured for the first quarter of 2014 were Colorado Springs; $822, Ft. Collins, $1216; Loveland, $1026; Grand Junction, $525; Greeley, $793; Pueblo, $595. The average rent in metro Denver, measured last month in a separate survey, was $1,073.
growth has accelerated in northern Colorado and metro Denver over the
past year, pushed along by job growth and demand that continues to
outpace new construction in many market areas," said Ryan McMaken, an
economist with the Colorado Division of Housing. "We have seen vacancies
pushed up a little in some markets with a significant amount of new
multifamily construction, such as Colorado Springs and metro Denver, but
it has not been enough to push the average rent back down.
The vacancy rate in Colorado apartments
during the first quarter of 2014 rose across the state with the
statewide composite vacancy rate rising year over year to 5.2 percent
from 2013’s first-quarter vacancy rate of 4.9 percent. The first
quarter’s rate was down from 2014’s fourth-quarter rate of 5.4 percent.
Vacancy rates varied in different metros of the state, however, with the Ft. Collins/Loveland
area’s vacancy rate dropping to a thirteen-year low of 1.7 percent
while Colorado Springs’s vacancy rate increased to 6.7 percent. Grant
Junction's vacancy rate dropped to a five-year low of 5.3 percent.
is one of those places where brand-new buildings in the process of
lease-up have increased the vacancy rate, with Greeley's rate rising to
4.4 percent, McMaken said. "But if we ignore the brand-new buildings in
our calculations, we find a vacancy rate of only 0.7 percent in Greeley
overall which shows that there's still a very tight market there."
Vacancy rates in all metropolitan areas measured for the first quarter of 2014 were Colorado Springs; 6.7 percent, Ft. Collins/Loveland, 1.7 percent; Grand Junction, 5.3 percent; Greeley, 4.4 percent; Pueblo, 8.1 percent. The vacancy rate in metro Denver, measured last month in a separate survey, was 5.1 percent.
vacancy rate of 5 percent or below suggests a tight market. The
statewide composite vacancy rate and average rent includes metro Denver.