Colorado Springs area renters continued to pay more for apartments at the end of last year. Search homes for sale in Flying Horse at www.rehava.com
The average rent for a local apartment rose to $1,265.92 a month in the fourth quarter. That is shy of a record, but still $62.33 higher than one year ago. These findings are according to a survey of apartment owners and landlords by Ron Throupe. Ron is an associate business professor at the University of Denver’s Daniels College of Business.
Fourth-quarter rents last year dipped almost $11 from the third quarter. But fourth-quarter costs traditionally decline from the third quarter because landlords see fewer renters late in the year and therefore lower rates to woo tenants.
Vacancy rates dropped to 4.9%
The Springs-area apartment vacancy rate, meanwhile, dropped to 4.9% during the period, a decline from 5.3% in the third quarter and down from 5.8% a year earlier.
A higher fourth-quarter vacancy rate might have been expected, since that’s when the demand for apartments slows. The COVID-19 pandemic, however, might have caused more renters to stay put in the fourth quarter, which led to a tighter supply of available apartments.
In general, the demand for all types of housing remains strong, and the apartment market is no different, Nelson said. The demand for apartments has been driven, in part, by millennial’s who don’t want to be tied to a mortgage and empty nesters who want maintenance-free living, industry experts have said.
It’s a very hot housing market all the way around, including apartments.
Developers have taken notice, too.
Several out-of-state real estate companies are building apartment complexes in Colorado Springs, whether in suburban areas or downtown. In 2020, developers added 1,172 apartments to the market — 73 less than in 2019, but 37 more than in 2018.
As part of their rent and vacancy report, owners and landlords were asked about the status of rent payments by their tenants during the fourth quarter. The majority of respondents said less than 5% of renters were delinquent.
