Rents in Colorado Springs dropped 10 percent, according to one source.
ABODO.com, an online apartment listing services targeted to Millennials, reported that Colorado Springs was seventh on the list of communities where rents fell most.
“From Feb. 10 to March 10, we saw a decrease in rents in Colorado Springs,” said ABODO Senior Communications Manager Sam Radbil. “As we’ve seen in the past, as vacancy rates increase and more rental units become available, prices should begin to decrease. Another big reason we anticipate the rent growth might slow in cities like Colorado Springs is the huge boom in multifamily construction, as mentioned in our report. Our experts feel that the development and construction of new rentals is going to help slow the rapid increase in rent pricing.”
The U.S. Census Bureau reports homeownership at 63.8 percent, the lowest level since 1989, said the ADOBO news release.
To reach its conclusion, ADOBO studied pricing information from more than 1 million rentals, including listings within walking and commuting distances of university and college campuses.
Last year, 250,000 apartments were constructed in the United States and 285,000 rentals are expected to be built this year, Radbil said. Construction of multi-family housing is as high as its been in the past 45 years, he added.
According to a survey conducted by the National Association of Realtors, more than 75 percent of people would buy a single-family home if they were to buy in the next six months. Renters said they would choose to buy outside urban areas, the NAR said.
Accelerating home prices and the perceived difficulty in obtaining a mortgage appears to be tugging at the confidence of renters., said Lawrence Yun, NAR chief economist.