Apartment vacancies increased to 6.1 percent during the fourth quarter of 2007, while the average rent increased slightly to $860.36.
According to the Metro Denver Multifamily Vacancy and Rent Survey, released today by the Colorado Division of Housing and the Apartment Association of Metro Denver, the fourth quarter’s vacancies were up from the third quarter rate of 5.3 percent.
However, 6.1 percent is the lowest fourth-quarter vacancy rate reported since 2001.
Vacancies were 7.0 percent during the fourth quarter of 2006, down from a peak of 13.1 percent experienced during the second quarter of 2003.
Average rents are down from the peak of $865.76 reported during the third quarter of 2006, but remain largely stable, increasing from $858.36 during the third quarter of 2007 to $860.36 during the fourth quarter. The most notable movement in rental and vacancy numbers was found among “”economic vacancy” rates.
According to the report, 2,262 new apartment units were added to the metro area during 2007. During 2002, new construction peaked at 9,123 units, but quickly fell to a new low of 738 units during 2006.
Economic vacancy takes into account the impact of concessions such as free rent offered at leasing and other perks designed to convince renters to sign a lease. During the fourth quarter of 2007, economic vacancy was 16.6 percent. That’s down from 17.3 percent during the third quarter and down from 22.3 percent the previous year.
Vacancy rates for all metro counties were: Adams, 7.4 percent; Arapahoe, 6.0 percent; Boulder/Broomfield, 5.4 percent; Denver, 5.5 percent; Douglas, 7.0 percent; and Jefferson, 6.0 percent.
Average monthly rents for all metro counties were: Adams, $844.30; Arapahoe, $813.83; Boulder/Broomfield, $936.53; Denver, $860.00; Douglas, $1043.09; and Jefferson, $826.07.
Resource
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Jeffery McClintock, is a real estate broker in Denver and prides himself on providing clients with professional guidance in all phases of residential new construction, including market research, product development, consulting, marketing and advertising. His personal mission is to bring to you a level of knowledge, experience, commitment, high standards and results to answer your real estate needs. He believes, the most effective way to provide superior service is to build a strong working relationship with you. His system includes regular consultations and feedback, which is the best tool for identifying and clarifying your real estate objectives and help define strategic solutions.
Jeffery has been a licensed Realtor since 1995. During this time he has successfully closed over 135 million dollars of residential real estate, and 40 million dollars in un-improved land amounting to 660 individual real estate transactions. His professional experience includes the Denver Colorado front range and the Second Home market in Breckenridge, Colorado located in Summit County.
Posted by: Jeffery McClintock
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