Colorado apartment vacancy rate falls, rents rise

DENVER – Vacancy rates for apartments fell to 5.2 percent during the second quarter of 2011 to the lowest rate recorded since 2001, according to a report by the Colorado Division of Housing.

The report said the combined vacancy rate for apartments across all of Colorado’s metropolitan areas fell to 5.2 percent during the quarter compared to 6.2 percent for the same quarter in 2010. The rate had been 5.5 percent for the first quarter of this year.

The year-over-year drop in the statewide rate reflected declines in vacancy rates in the Fort Collins-Loveland, Pueblo, Grand Junction and metro Denver areas. Fort Collins posted a 6.4 percent vacancy rate for the second quarter while Loveland posted a 5.2 percent rate.

Vacancy rates increased slightly in Greeley and Colorado Springs, the report said, with Greeley posting a 6.7 percent vacancy rate.

“Although there were some small increases in the vacancy rate in some areas, the larger trend in the state is clearly toward fewer vacancies since 2009,´ said Ryan McMaken, Division of Housing spokesman. “The Denver area and Northern Colorado have some of the tightest markets right now, and not surprisingly, in those areas we’re also seeing some of the most sustained growth in rents in recent quarters.”

Statewide, the average rent increased 2 percent from the second quarter in 2010, rising from $862 to $877. The average rent in Greeley rose 5.1 percent over the same quarter a year ago but increased only 0.8 percent in Fort Collins, the report noted.

The largest increase in average rent was in Loveland, where it increased 11.7 percent over last year.

The average rent in Fort Collins-Loveland was $882 while the average rent in Greeley was $649, according to the report.