Grand Junction apartment vacancy rates, monthly rents both decline
The average apartment vacancy rate in Grand Junction declined during the fourth quarter of 2010, as did the average monthly rent.
According to the latest results of a quarterly survey reported by the Colorado Division of Housing, the average apartment vacancy rate in Grand Junction fell to 7.5 percent for the fourth quarter. The average monthly rent fell to $616.58.
The latest vacancy rate is four-tenths lower than the third quarter of 2010 and 5.7 points lower than the fourth quarter of 2009, when the rate spiked to 13.2 percent. The year-over-year decline was the largest among six metropolitan areas in Colorado included in the survey.
Still, Grand Junction apartment vacancy rates remain more than double and even triple the rates in 2007 and 2008. A rate of 5 percent is considered an equilibrium between supply and demand.
For the fourth quarter of 2010, the vacancy rate was lowest for efficiency apartments at 5.6 percent and highest for two-bedroom, two-bathroom apartments at 10.5 percent.
The rate was lowest for apartment buildings with nine to 50 units at 6.9 percent and highest for buildings with 51 to 99 units at 7.8 percent.
The turnover rate, the frequency with which renters move out of apartments, ranged from 2.8 percent to 6.4 percent depending on the age and size of the apartment buildings.
The average monthly rent for apartments in Grand Junction fell $39 from the third to the fourth quarter of 2010 and at $616.58 is now at the lowest level since the fourth quarter of 2007. At this time last year, the average monthly rate was nearly $17 higher at $633.46.
The average monthly rent was lowest for efficiency apartments at $237.50 and highest for three-bedroom apartments at $876.43.
The rent was lowest for apartment buildings with nine to 50 units at $553.73 and highest for buildings with two to eight units at $695.48.
Statewide, the composite vacancy rate for multi-family housing fell to 5.8 percent in December 2010, down from 7.9 percent in December 2009.
Across Colorado, apartment vacancy rates ranged from 4.1 percent in the Fort Collins and Loveland area to 10.2 percent in Pueblo during the fourth quarter. Compared to this time last year, vacancy rates fell in all six metro areas.
Despite falling vacancies, rents didn’t increase substantially compared to last year, While median rents were up 6.2 percent in the Fort Collins and Loveland area, rents rose or fell less than 2 percent in other areas.