The metro Denver apartment vacancy rate grew to 10 percent in the fourth quarter of 2004, despite falling in the third quarter of the year. (The Denver Post, Jan. 27, 2005).
Most of the market is quiet but we are seeing some activity in the non-student rentals. An slightly increasing number of calls from prospective tenants is coinciding with anecdotal evidence of a better job market. Due to the high number of available units it is still a renters market but edging up.
As you can see from the chart we are still a ways from where we were in 2002. However, the February numbers for the last three years show we may have peaked last year. This time in 2003 there were 483 rentals advertised, in 2004 we had 934 (ouch!), and this year we are back down to 667. I think this year is also a bit skewed as our source for these figures is now including an expanded marketing area. Tough to know precisely but we want the trend to continue.
The student market is kicking into high gear again. Next week (2/16) CU will hold the first of this year's off campus housing fairs. Last year our student properties were 100% rented within 3 weeks of the fair. This year we are already scheduling showings--before the fair! Portions of this segment are still showing some insulation from the market in general. However, some of the student properties further from campus are still struggling. We will have a more concise report in next month's newsletter.
