Apartment rent increases slow

Filed under: Uncategorized |

Approximately 36% of Colorado Springs adults reported to The Media Audit, a Houston-based demographics service, that they are renters rather than homeowners.

The good news for these residents is that apartment rentals seem to be leveling off as the average market rent comes to what Colorado Springs renters are willing to pay.

Year-to-date average rent per unit is $526, up slightly from 1995’s average rent of $514. In 1992, rents jumped a dramatic 14.9%. In 1993, the increase slowed to 10%; the 1994 increase was 9.3%; and in 1995 rents were up 4.5%.

Doug Carter, an apartment specialist with Palmer McAllister, a Frederick Ross Company, is projecting rental increases of about 4.6% for 1996.

The average size of the units in Colorado Springs is 770 square feet. Many luxury apartments are currently leasing with an average of 950 square feet and an average rent of $855 per unit.

Approximately 2,500 units have changed hands in 1996, for a total sales volume of almost $95 million. Commanding top dollar per unit was the Quail Run Apartments, which sold for $6.6 million or $48,713 per unit. The average sales price per unit was $36,110 during the first six months of 1996, according to the <I>Turner Commercial Report</I>.

Carter said the volume of sales indicates that 1996 will be the biggest year for apartment complex sales in the last two decades.