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A steep hike in the regional unemployment rate helped push apartment vacancies to the highest level in more than four years, state housing data showed Thursday.
The vacancy rate for multifamily units in the Grand Junction market skyrocketed to 7.5 percent in third quarter ending Sept. 30. That was up from 2.4 percent in the same three months of 2008, the Colorado Division of Housing reported.
The regional jobless rate was up more than 4 percent in the same one-year period.
“For the last several years the vacancy rate and the unemployment rate are tracking very similarly,” said Gordon E. Von Stroh of the University of Denver, who authored and researched the report. “When unemployment goes up, vacancies go up. That is what happened in Grand Junction and in the Grand Valley.”
Vacancy rates for regional multifamily units were highest among three-bedroom units at 24.7 percent in the third quarter, up from 1.1 percent in the third quarter of 2008.
The most recent rate was also the highest since the first quarter of 2005 when vacancies stood at 31.6 percent for three bedroom units. The overall vacancy rate was 8.7 percent in the third quarter of 2005.
The second highest rate was 8.1 percent for two-bedroom, one-bath units in the third quarter ending Sept. 30. The lowest rate was 6.8 percent for one-bedroom units.
Cindy Hoppe of Bray Real Estate in Grand Junction said the increase in vacancies was also a result of “younger people moving back in their parents.” She also said that some people were getting into roommate situations, becoming more frugal given the state of economy.
Also on the rise was the average monthly rent, which increased to $674.31 in the third quarter from $670.24 in the same period last year.
Statewide, Pueblo had the highest vacancy rate at 12 percent. Montrose followed with a reading of 11 percent, based on a survey of 21 market areas. The lowest was 2.7 percent in the tony ski town of Aspen.
The highest average rent was in Eagle County at $1,091.44.
Von Stroh said it is likely vacancies are going to remain high in the Grand Junction area for the time being as labor pains continue to affect the market.
“In six months it will be looking a lot better,” he said.
Reach Wyatt Haupt Jr. at whaupt@gjfreepress.com.
The vacancy rate for multifamily units in the Grand Junction market skyrocketed to 7.5 percent in third quarter ending Sept. 30. That was up from 2.4 percent in the same three months of 2008, the Colorado Division of Housing reported.
The regional jobless rate was up more than 4 percent in the same one-year period.
“For the last several years the vacancy rate and the unemployment rate are tracking very similarly,” said Gordon E. Von Stroh of the University of Denver, who authored and researched the report. “When unemployment goes up, vacancies go up. That is what happened in Grand Junction and in the Grand Valley.”
Vacancy rates for regional multifamily units were highest among three-bedroom units at 24.7 percent in the third quarter, up from 1.1 percent in the third quarter of 2008.
The most recent rate was also the highest since the first quarter of 2005 when vacancies stood at 31.6 percent for three bedroom units. The overall vacancy rate was 8.7 percent in the third quarter of 2005.
The second highest rate was 8.1 percent for two-bedroom, one-bath units in the third quarter ending Sept. 30. The lowest rate was 6.8 percent for one-bedroom units.
Cindy Hoppe of Bray Real Estate in Grand Junction said the increase in vacancies was also a result of “younger people moving back in their parents.” She also said that some people were getting into roommate situations, becoming more frugal given the state of economy.
Also on the rise was the average monthly rent, which increased to $674.31 in the third quarter from $670.24 in the same period last year.
Statewide, Pueblo had the highest vacancy rate at 12 percent. Montrose followed with a reading of 11 percent, based on a survey of 21 market areas. The lowest was 2.7 percent in the tony ski town of Aspen.
The highest average rent was in Eagle County at $1,091.44.
Von Stroh said it is likely vacancies are going to remain high in the Grand Junction area for the time being as labor pains continue to affect the market.
“In six months it will be looking a lot better,” he said.
Reach Wyatt Haupt Jr. at whaupt@gjfreepress.com.
