Denver apartment market improves

After years of increasing vacancy rates, Denver's apartment market appears to be making a comeback.  The rate for the first quarter 2006 was 7.4% which is the lowest it's been since 2000.

Newly constructed communities are still facing vacancies of arond 25% while units that are 1-4 years old have the lowest vacancy rates at 7%.

Average rental rates for all units is $835 which is up from $822 in the past year.  There are 165,000 existing units in communities of at least 50 units as of April 1st with another 15 projects under construction that will add 1,719 units to the area. There are 3,400 units currently in some stage of the development process but some of those may ultimately not be built.

The continued stabilization is actually a result of the high foreclosure rate in Colorado.  There are fewer renters purchasing new homes and those people who have had to leave their homes due to foreclosure are renting apartments.

Over the long tern, Denver is an excellent place for apartment investments although experts believe the apartment market will stay soft through 2007.

6:01 PM - Jun. 8, 2006 - comments {0} - post comment

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