As we wave goodbye to another dynamic year, it is our pleasure to present a comprehensive overview of the 2023 rental market, specifically tailored to the vibrant landscape of Colorado. In this edition, we delve into rent averages, analyzing how they compare to neighboring cities, and provide a brief update on vacancy rates in Colorado.
Average Rental Rates In Colorado
The average rental rate across the Colorado Springs area is $1,172 for a one-bedroom apartment, marking a 9% decrease from the annual average. For two-bedroom apartments, there’s a further decline, with the average rental price at $1,527—a 12% drop from the annual average. These averages, however, vary significantly across neighborhoods in the Colorado Springs area. Northwest Colorado Springs emerges as the most expensive, boasting an average of $2,250 for a one-bedroom and $2,695 for a two-bedroom apartment. In contrast, Southeast Colorado Springs stands as the most affordable area, with averages of $1,000 for a one-bedroom and $1,299 for a two-bedroom apartment. While Northwest COS has consistently maintained these averages, Southeast COS has experienced a noteworthy decline in rental prices throughout 2023. In comparison to the Colorado Springs area, Manitou Springs proves to be the most similar. A 2-bedroom apartment in Manitou Springs costs an average of $1,400. The Denver area has proven to be the most expensive out of the group. On average, a 1-bedroom apartment is approximately $2,043, and a 2-bedroom is $2,741. On the other hand, the Fountain and Pueblo areas have consistently been the most affordable. The median gross rent for the Pueblo area is $700, and for Fountain, it’s $795.
Rental Vacancy Rates
Nationally, as a country, we have experienced a rise in rental vacancy rates, reaching an all-time high of 6.4% since 2020. This trend is reflected regionally, with the Midwest having the second highest vacancy rate after the South. On a statewide level, we observe a steady increase. Between the second and third quarters of 2023, Colorado’s rental vacancy rate rose from 5% to 8%. It is commonly believed that the increasing rental vacancy rate is a direct result of widespread apartment construction, both at the state and national levels. This trend has significantly influenced the housing market, leading to a decrease in homeowners selling. For those who do decide to sell, the average time on the market has extended to 40 days and beyond.
While property owners and others alike battle against these dismal statistics day in and day out, it is imperative to have an outstanding property management team that is competent in their leasing abilities!
If you are interested in doing further research, we highly recommend the websites down below:
– https://ipropertymanagement.com/research/rental-vacancy-rate#colorado
– https://www.zillow.com/rental-manager/market-trends/colorado-springs-co/
– https://managecasa.com/articles/us-rental-occupancy-rates/
– https://www.rent.com/colorado/colorado-springs-apartments/rent-trends
