"The overall vacancy rate for this quarter has increased significantly, although some increase in vacancy is typical for the fourth quarter," Von Stroh writes in the report. He notes "industry standards would suggest that the Colorado Springs metropolitan area market is significantly above the supply and demand equilibrium."
The average monthly rent fell to $670 a month, a 12.4% drop from $693 for the fourth quarter 2003. The average rent is even lower than at the end of 2002, when it stood at $676. The median, or middle rent, however stands at $672, up from $626 at the end of 2003.
Rental losses due to discounts, concessions, models, delinquencies and bad debts stood at 16.8%. Economic vacancy, which is the physical vacancy plus rental losses, is 30%. "Average rents have fluctuated because of the dynamic rental character of the Colorado Springs metro area economy," Von Stroh says.
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