Local apartment vacancies plunged to 9-year low during the 2nd quarter
Colorado Springs-area apartment vacancies fell to 5.8 percent in the second quarter, the lowest vacancy rate since 5.4 percent in the third quarter of 2001, according to a report released today by the Colorado Division of Housing and the Apartment Association of Southern Colorado.
Troop increases at Fort Carson and a lack of new apartment construction were cited as reasons for the falling vacancy rate, said Gordon Von Stroh, a University of Denver business professor who authored the report.
Even with an increased demand and a relatively fixed supply of rental units, average apartment rents have increased only slightly. The average monthly rent in the second quarter rose to $719.22 from $717.65 during the same period a year ago.
“Average rents have increased in the area, but a lack of job growth across the region will keep some downward pressure on rents,” said Ryan McMaken, a Division of Housing spokesman. “This rent data is from June, and June employment data shows that year-over-year employment in El Paso County fell by about 7,000. It’s tough for apartment owners to raise rents in such an environment.”
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