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.

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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. 

3 COMMENTS

  1. I would take some of this article with a grain of salt. For many reasons.

    The article includes the college demographics in this report. Everyone knows…or should know…that once the spring semester starts…very few students move until May.

    Anyone with school age kids will not move in Feb or March unless absolutely necessary. Of course the rents would go down as there are no renters and to get them you have to entice them. But with what?

    Lower rents and incentives are all you can entice people to move with and that does not trump college classes, daycare, and moving grade school kids during the school year. Couple that with February being one of the worst weather timeframes for moving and there you have it.

    According to government statistics, “About 3.3 million students are expected to graduate from high school in 2015–16” http://nces.ed.gov/fastfacts/display.asp?id=372 Eventually the majority of those students will move into the rental market, just like each year, which will fill most of the newer apartments. So that theory is not totally valid either.

    Write this article in October and tell me that the rents have went down from August/September of 2016 versus 2015…then you will have a story. I hope they have dropped so that it will be more affordable for the younger renters.

  2. Working in the Housing Authority arena, we are absolutely not seeing rents get lower and available units are more than sparse. Rents are increasing and many apartment communities are “improving” their units and raising rents far above HUD payment standards. The HUD standards are FMR or Fair Market Rents based on the Census American Community Survey of 2013, that’s Government for you. Regardless, rent amounts are increasing at alarming rates and many participants from the Denver Metro area are trying to locate to the Colorado Springs area due to the extreme rise in rents up there, further overwhelming our availability’s. Denver area housing Authorities have contacted local Housing Authorities seeking vacancies. Discussions with many of the Apartment Complex/Communities verify low availability and rising costs.

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