Report: Apartment vacancy drops, rents rise

While Colorado Springs apartment vacancy rates fell in the second quarter, rents increased.

Apartment Insights, a quarterly apartment market report put together by apartment broker Doug Carter at Sperry Van Ness, reported a city-wide vacancy rate of 6.38 percent.

The average rent increased $7 from the first quarter to $747 per unit. Rent citywide is up 2 percent — $15 – from the same period in 2011.

The decrease in vacancy follows two consecutive quarters of increases when the rate rose from an almost 10-year low of 5.22 percent up to 7 percent in the first quarter of this year.

Vacancy rates had been above 10 percent for about a decade up until 2011.

Vacancy rates decreased in six of nine Colorado Springs submarkets. The airport region had the highest vacancy rate in the first quarter. It dropped 1.75 percentage points to 7.61 percent in the second quarter.

The highest vacancy rate in the city is 8.23 percent in the Rustic Hills area.

The west and north areas of town saw dramatic improvement. The western region has a vacancy rate of 4.24 percent and is the only region with a rate lower than 5 percent.

The Security/Widefield area saw vacancy rates rise. But they’re still low at 5.25 percent, according to the report.

The southwest, north central and Palmer Park districts all have vacancy rates below 6 percent.

Rental rates were also mixed across submarkets. Four saw increases and four saw decreases. Rates stayed flat in Security/Widefield/Fountain submarket.

They increased the most in the western region, where the average rent went up $25 over the average in the first quarter of the year. It was up just $17 from the average a year ago.

Rustic Hills saw its average rent increase $20 for the quarter and $29 for the year. Rents in the southwest increased by $21 over rates a year ago. The south central region was the only area to see an annual rent decrease. Average rates there dropped $1 year-over year.