Multifamily Rental Vacancies Hit 12-Year High

DENVER-Multifamily rental vacancies in the second quarter rose to a 12-year high of 9.3%, a 63% increase in the rate a year earlier, but less of a jump from the 8.7% in the first quarter, according to a report by the Apartment Association of Metropolitan Denver.The vacancy rate has almost doubled in the past two years, as it stood at 4.9% in the second quarter of 2000.

Meanwhile, the average rent increased to $810.35 for the second quarter, up $4.70 from the first quarter. Rental rates rose after going down for two quarters, a sea change from years of every quarter setting a new record.

The average rent figures do not include the cost of rental discounts/concessions, models, bad debts and delinquencies. For the second quarter, those hits against rent collected by property owners averaged 7.4%, up 0.1% from the previous quarter.

The report shows that buildings with 350 and more units had the highest vacancies at 10.5%, up from 9.2% for the first quarter. Lowest vacancies are found in building with two to eight units. Those buildings had an average vacancy rate of 5.9%.

Historically, larger buildings have the highest vacancy rates.