Average apartment rents in the Colorado Springs area rose year over year for the seventh straight quarter during the first three months of 2014, according to a report by the Colorado Division of Housing.
Average rents in the metro rose 4.3 percent to $822 from $787 during the same quarter of 2013, said the report, released Monday in partnership with the Apartment Association of Southern Colorado. That rental rate is also up from $799 during the fourth quarter of last year.
“Rent growth has continued with a slowly-improving job market in the region, and as vacancies continue to be scarce in most submarkets,” said Ryan McMaken, Division of Housing economist, in a release announcing the report.
Each region in the metro area experienced similar growth except the Springs’ Northwest region, the report said. The most substantial increases were seen in the Far Northeast region, where average rent rose 10.2 percent to $948 from $860 the same time last year; and in the Southwest region, where rates increased by an average of 6.5 percent to $747, up from $701 during the first quarter of 2013.
During the year’s first quarter, the lowest average rates were found in the Security/ Widefield/ Fountain region. Average rents in that region were $627.
The report stated apartment vacancy rates also declined in the first quarter to 4.9 percent from 5.6 percent the same time last year. That rate is down from 6 percent during quarter four of 2013.
The decrease in vacancy was experienced in every region except the Southwest and Central submarkets. The highest of those rates was seen in the Southeast, with 6.2 percent, while the lowest was experienced in Security/ Widefield/ Fountain, with 3.9 percent.
“While we’re seeing some of the lowest vacancy rates we’ve seen in a decade, there is new construction in the works, and that’s pushing rates back up,” McMaken said. “If we include brand new units that are still leasing up, we find that the regional vacancy rate is 6.7 percent, and it’s even 13.7 percent in the Northwest, and 7.9 percent in the Far Northeast.”