Apartment Vacancies Hit a Ten-year Low in Metro Denver
A new report finds median rents in the Denver metro area are on the rise, as apartment vacancy rates fall to their lowest levels in ten years.
The survey from the Colorado Division of Housing and the Apartment Association of Metro Denver says that vacancy rates for the first quarter of 2011 more than 15% from the same time last year, to 5.5%. That’s the lowest rate since 2001, says Division of Housing spokesman Ryan McMaken, who adds that areas with the best employment situations generally see tighter rental markets.
“Metro Denver is among the areas that has one of the better unemployment rates,” says McMaken. “And what we’ll find in the next survey…is that Northern Colorado, especially Larimer County – the Ft. Collins/Loveland area – is going to continue to have among the lowest vacancy rates, and probably the highest amount of rent growth.”
As vacancy rates drop, median rent prices in the area are rising. McMaken says rent tends to go up over time anyway, but he says what’s notable is that for the last few quarters, rent increases have been slightly outpacing inflation.