Colorado Springs apartment vacancies fell to 7.2-percent in the fourth quarter of 2010, according to a report out today by the Colorado Division of Housing.
Vacancy rates fell 1.5-percent from the fourth quarter in 2009, to the lowest level of fourth quarter vacancies since 2001.
“After years of moving sideways from 2003 through 2008, apartment vacancy rates appear to have established a downward trend over the last 18 months,” said Division of Housing spokesperson Ryan McMaken in a prepared statement. “The return of a large number of troops, a lack of multifamily building, and a decline in the demand for home ownership has all come together to keep vacancies moving down.”
Median rents in Southern Colorado increased over the same period from $700.17 to $711.12.
“From 2005 to 2009, the median rent wasn’t keeping up with inflation in Colorado Springs, so rents were effectively going down,” said the report’s author, Gordon Von Stroh, in a prepared statement. “Over the past couple of years, we’ve started to see some sustained increases in rents, however, and multifamily owners will undoubtedly now need to push rents in hopes of making up for those years of falling rents.”