Demand for apartment rentals skyrockets in Colorado

By Howard Pankratz
The Denver Post

The demand for rental apartments skyrocketed across Colorado during the first quarter of 2011 as fewer people sought to buy homes, the Colorado Division of Housing said today.

Apartment vacancy rates fell and rents rose during the first quarter reflecting the increased demand and the ability of apartment owners to raise rents.

“The effect of less home buying combined with continued local population growth has been a lot of demand for rental housing,” said Ryan McMaken, spokesman for the Division of Housing. “As a result, we’re now looking at some of the most solid rent growth since 2008 before the recession hit.”

The combined statewide vacancy rate, which includes vacancies from all survey areas and metro Denver, fell 16.6 percent year-over-year, from 6.6 percent to 5.5 percent.

The largest drop in the vacancy rate was in Grand Junction where, year-over-year, the rate fell 45 percent from 11.6 percent to 6.3 percent.

Close behind in sizeable drops were Greeley with a 44 percent drop and Pueblo with a 41 percent drop.

The vacancy rates in Greeley and Colorado Springs are both at nine year lows.

The metro Denver vacancy rate, which was measured earlier this month in a separate survey, also fell year-over-year from 6.5 percent to 5.5 percent.

From the first quarter of 2010 to the first quarter of 2011, average rents increased in Colorado Springs, Fort Collins-Loveland and Pueblo. The average rent fell nearly one percent in Grand Junction, and average rent in Greeley was flat.

Rents grew most in the Fort Collins-Loveland area where the average rent increased 7.5 percent year-over-year from $837 to $901 during the first quarter. The average rent grew 3.8 percent in the Colorado Springs area and 4.2 percent in Pueblo.

Average rents in all metropolitan areas that were measured were Colorado Springs, $737; Fort Collins-Loveland, $901; Grand Junction, $656; Greeley, $660 and Pueblo, $570.

The average rent in the Denver metro area grew 3.8 percent and was $911 during the first quarter.Howard Pankratz: 303-954-1939 or hpankratz@denverpost.com.

Read more: Demand for apartment rentals skyrockets in Colorado – The Denver Post http://www.denverpost.com/business/ci_18048389#ixzz1MG5s5yEC

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About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

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