I read this story in the CO RE Journal about our apartment market in the second quarter. Gary Bruteig’s Apartment Appraisers & Consultants has taken over the creation of the quarterly apartment report.
The vacancy rate dropped by 0.61% to 5.2% in the 2nd quarter
Average money rent rose 3.9% from a year ago to $1454 a month
Renters absorbed 3,872 new units that blew away last year’s record number when renters absorbed 2.818 units.
The report also noted that many apartment communities are eliminating any concessions due to stronger demand.
Strata Apartments in Green Valley Ranch their prelease rate was nearly 100% before they received their certificate of occupancy.
Let me help you understand why the absorption number is so important. Builders are building a record number of apartments and consumers are there signing leases. And the vacancy rate is dropping which tells me that builders can’t build apartments fast enough!