The apartment vacancy rate in the Denver metro area fell to 4.8 percent in the second quarter, dropping to the lowest vacancy rate recorded since the first quarter of 2001. According to a report released Monday by the Apartment Association of Metro Denver and the Colorado Division of Housing, apartment vacancy rates fell 21 percent year-over-year from last year’s second-quarter rate of 6.1 percent. The vacancy rate was also down from 2010’s first-quarter rate of 5.5 percent. The vacancy rate generally falls from the first to the second quarter as a result of seasonal factors.
As vacancy rates moved down, the area’s median rent increased. During the second quarter of 2011, the median rent in metro Denver rose to $863.37, increasing 2.5 percent from 2010’s second-quarter median rent of $842.70. In county-level market areas, the median rent rose in Adams, Arapahoe and Jefferson counties, but fell slightly in Denver County, Douglas County and the Boulder/Broomfield area. The region with the largest year-over-year increase in median rent was Arapahoe County with an increase of 4 percent from $806.11 to $838.79. The largest decline was found in Denver County where the median rent fell 1.6 percent from $814.14 during 2010’s second quarter to $800.94 during this year’s first quarter.
Although market rents increased in many areas over the past year, rental losses due to concessions, discounts and delinquencies rose slightly. Rental losses rose to 11.4 percent during the second quarter of 2011, rising from 2010’s second-quarter rate of 9.6 percent.
2011’s second-quarter vacancy rates by county were Adams, 5.2 percent; Arapahoe, 5.5 percent; Boulder/Broomfield, 4.6 percent; Denver, 4.1 percent; Douglas, 3.8 percent; Jefferson, 4.5 percent.
Median rents for all counties were: Adams, $863.85; Arapahoe, $838.79; Boulder/Broomfield, $969.13; Denver, $800.94; Douglas, $1015.33; and Jefferson, $813.50.
The Vacancy and Rent Surveys are a service provided by the Apartment Association of Metro Denver and the Colorado Department of Local Affairs’ Division of Housing to renters and the multi-family housing industry on a quarterly basis. The Colorado Vacancy and Rent Survey reports averages and, as a result, there are often differences in rental and vacancy rates by size, location, age of building, and apartment type. The full report is available through the Apartment Association of Metro Denver at www.aamdhq.org; and limited information is available online at the Division of Housing web site: http://www.divisionofhousing.com.