Apartment rent at Colorado Springs-area residences hovered near a record high late last year part of a two year climb in renter costs that's anticipated to resume as requirement for multi-family properties remains robust, industry commentators say. Apartment In Castle Rock
Monthly leases averaged $775.44 in Q4 of 2011, about $37 more than the same period in 2010, according to a report released Wednesday by the Colorado Division of Housing and the Apartment Association of Southern Colorado.
It was the eighth uninterrupted year-over-year quarterly increase in leases, the report showed.
Fourth quarter rents did decline about $3 from Q3, but stayed near that quarter's record high of $778.35.
The highest average fourth-quarter lease, $900.42, was paid by flat dwellers on Colorado Springs' northeast side. The lowest average hire of $615.80 was found in Fountain and the unincorporated Security-Widefield area, which are south of the Springs and near Fort Carson.
Hires are up because demand is rising. The citywide vacancy rate for apartments stood at 6.7 % in quarter 4 an one-half of a p.c. point increase from quarter 3, yet significantly under the 7.2 % vacancy rate in the fourth quarter of 2010, according to the report.
The area's vacancy rate has fallen continuously from double-digit levels over the past one or two years.
When homebuilding and homebuying was rising from 2003 thru 2007, and thousands of troops were overseas in Iraq, house vacancy rates frequently topped 10 percent.
Since 2007 Nonetheless, thousands of area owners have lost their properties to foreclosure and are now hiring. Other house owners can't qualify for a mortgage due to tougher borrowing necessities by lenders. And thousands of Army troops have returned to Fort Carson from their deployments or moved here from other installations.
The increased demand has driven up hires and triggered construction of one or two residence projects in Colorado Springs, Fountain and Monument.
"The banks are not slackening up at all," Laura Russmann, director of the Loft Association, said of lending practices. "The requirements are tougher and tougher and I don't believe, though there are a couple of things the ( Obama ) administration is looking at at the moment to kind of help homeowners, I don't see that accelerating home possession in any sort of a mass way.
"This ( powerful demand and rising hires ) is going to continue, and that's the reason folks are beginning to build now," she explained.
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