Single-family rental vacancies fall to 2.6 percent
The vacancy rate for for-rent condos, single-family homes, and other small properties in metro Denver fell from the second quarter of 2010 to a new second quarter low of 2.6 percent during 2011, the Colorado Division of Housing reported today.
The vacancy rate was 3.8 percent during the second quarter of 2010 and was 1.4 percent in the first quarter of 2011.
According to the report, the vacancy rate varied among types of property.
Triplexes had a vacancy rate above 4 percent while the vacancy rate for detached houses was 2.3 percent and 3.7 percent in rental condominiums.
Duplexes had the lowest vacancy rate at 1.2 percent.
“There is very solid demand for these types of properties right now,” said Robert Alldredge, principal at Jericho Properties Realty. “Although we continue to see new properties entering the market as rentals, I’d expect to see vacancies remain at low levels for at least the next 12 to 18 months.”
The average number of days on the market for single-family rentals and similar properties fell from 47.2 days during the second quarter of 2010 to a new all-time low of 15.7 days during the second quarter of 2011.
The number of days on the market also fell from 2010’s first quarter average of 29.7 days.
Susan Melton, owner and broker at Assured Management Inc., said the number of days on the market is “quite low right now.”
“Until recently, many of these units still had rather low rents in spite of high demand. So during the second quarter, they were being picked up very quickly by renters eager to get a lease in place,” said Melton.
She predicted that as rents become higher, the number of days on the market will become longer.
The highest county-wide vacancy rate was found in Adams County with 4.4 percent.
Vacancy rates for Arapahoe was 2.6; Boulder/Broomfield, 0.0 ; Denver, 1.2; Douglas, 2.1; and Jefferson, 3.7.
The average rent in metro Denver for a single-family and similar properties rose year-over-year to $1,063 during 2011’s second quarter, rising 3.5 percent from 2010’s second-quarter rate of $1,027.
Melton said more owners of the rental are able to get increases of 3 to 5 percent.
“That’s not an enormous growth, but it is more than we’ve seen in recent years. Many small property owners are reluctant to push rents too much since turnover can still be very costly for an owner who’s renting only one or two houses.”Howard Pankratz: 303-954-1939 or [email protected].