Denver Residential Vacancy Rates Continue to Drop
Denver Metro Vacancy Rates
Denver Residential vacancy rates continue to drop. The overall vacancy rate for the metro area for the fourth quarter of 2010 was 2.0 percent down from 2.9 percent in the third quarter. Gordon Von Stroh, PH.D., of the University of Denver’s Daniels College of Business released their vacancy report for the 4th quarter of 2010. Each quarter, Von Stroh surveys approximately 3,271 units in the seven county Denver Metro area. The survey is limited to single family homes and small mutli-family properties of 1-4 units.
Boulder and Broomfield counties had the lowest vacancy rate of 0.0 percent and Adams county had the highest of 3.6 percent followed by Denver with 3.0 percent, Arapahoe and Jefferson counties 1.3 percent and Douglas county at .09 percent.
Average Days on Market
For the units that were vacant, the average days on the market was 38.2 a slight increase from 36.0 for the third quarter of 2010. That average is down sharply from the fourth quarters of 2008 and 2009 which was 53.9 in 2009 and 45.4 days in 2008.
Average Rents
Average rents decreased to $1,029.82, down from the third quarter average of $1,041.05. The average rents posted an increase from the fourth quarter of 2009 of $1,016.77 and the fourth quarter of 2008 of $995.24. In 2006 which was the beginning of the housing crisis the average was $944.75. That rate compared to the latest quarterly report represents an average increase of 9%.
What Does This Mean for Landlords and Tenants?
It would seem to me with the vacancy rate so low, tenants will not have the housing choices that they’ve perhaps enjoyed in the past. With fewer vacancies to choose from, I would think that many tenants that would normally move at the end of their lease term may not move because they can’t find a replacement home. So perhaps for the landlord, there may be less turnover. With the demand up and the supply of rental homes down, it would stand to reason that rental rates should start increasing.
If you would like to receive a copy of the complete 52 page report, contact us and we’ll send you the report.
