Home rental vacancy rate hits 7.1% in Q2
John Rebchook, Rocky Mountain News
Friday, September 1, 2006
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The second-quarter vacancy rate for Denver-area residential rental -real estate - mostly single-family homes - was 7.1 percent, making it the best second quarter since University of Denver professor Gordon Von Stroh began tracking these statistics.
A year earlier, the rate stood at 9.5 percent.
Still, Von Stroh was expecting an even lower vacancy rate, noting it stood at 4.9 percent in the first quarter.
"I was surprised it went up that much," Von Stroh, a professor at the Daniels College of Business at DU, said Thursday.
He noted that vacancy rates for rental homes with one to four units, which include townhomes, condominiums and duplexes, rose from the first quarter in every metro-area county except Douglas.
"I think it has to do with the overall supply of housing, both for resales and new homes," Von Stroh said.
He also said the growing number of foreclosed homes could increasingly hurt the home rental market because some of those homes will end up in the rental market if they can't be sold. Colorado and the Denver area lead the nation in the overall foreclosure rate.
However, Von Stroh said some of the increase was due to seasonal factors.
His first full-year report was in 2002.
In only one year, 2004, did the vacancy rate drop in the second quarter from the first quarter.
"It is very common for people to lease homes during the first quarter," said Mike Rinner, of the Genesis Group, which tracks Front Range housing.
"I find Gordon's numbers very encouraging," Rinner said. "The rental market seems to be recovering nicely. Another way of looking at Von Stroh's numbers is that you have about a 95 percent chance of renting your house if it is priced right."
Median monthly rent for housing*
Bedrooms Q1 Q2
One $575 $570
Two $792.50 $795
Three $1,050 $1,050
Four $1,250 $1,250
Five $1,325 $1,295
All homes $880 $895*Includes Single-Family Homes, Duplexes, Triplexes, Fourplexes, Condos And Townhomes In The Denver Area Source: Gordon Von Stroh
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