High Rental Prices, Low Vacancy Means Economy Improving

Economists said that high apartment rental prices and low vacancy rates mean the state of the local economy is improving.

A new report released by the Colorado Division of Housing pointed out that apartment rental prices have risen for the ninth straight quarter.

According to the report, the average rent in the Colorado Springs metro area rose year over year, climbing 2.4 percent to $754.

The vacancy rate is currently about 6.4 percent.

Economist Fred Crowley said that the during the last recession, vacancy rates were much higher in El Paso County at around 11 to 11.5 percent.

He said that these new numbers indicate that the economy is strengthening. In fact, construction on new homes and apartment complexes is up this year, according to Crowley.

Crowley said that means prices will eventually soften as new units become available.

Cheri Devenyns is the manager of the Creekside at Palmer Park Apartments off of the Powers Boulevard corridor. She said she has about 92.4 percent occupancy, which is typical for many communities in Colorado Springs.

Devenyns said rental prices are determined by a price optimizer that takes supply and demand into account.

She said apartment hunters need to do their research and then talk to a leasing agent about lease lengths and move-in dates. She said it is possible to negotiate a better rental rate than a first offer.