According to data released by the Colorado Division of Housing, the average rent in Colorado Springs continues to grow at a historically high rates:
The last time the average rent grew at a similar rate was during the dot-com boom at the very end of the 1990s. If we look at the average rent over, time, we find that the general trend has, not surprisingly been upward, but has increased more rapidly over the past five years than was the case during the previous decade:
Looking just at nominal rent levels, however, can be misleading, and if we adjust for inflation using the nationwide CPI, we find that rents actually went down in real terms from 2003 to 2009. While there was some growth from 2009 to 2013, we see that even in inflation-adjusted terms that rent growth has picked up since 2014. Real rents only surpassed the 2001 high in 2014 following a long period of flat rents. Now, however, inflation-adjusted rents have surpassed the old 2001 peak, and have set several new all-time highs in recent quarters:
As one might expect, this year's robust rent growth reflects low vacancy rates. While not setting any records, the vacancy rates for Colorado Springs over the past year have been generally rather low, with the vacancy rate even dipping below five percent twice over the past two years. (A vacancy rate below five percent is generally regarded as "low".) In any case, recent vacancy rates are among the lowest we've seen since the dot-com boom days, and certainly among the lowest we've seen over the past decade.
Finally, we should note that vacancy rates and rents can be significantly affected by seasonal issues, with the fourth quarter often showing the softest markets each year, with the third quarter often showing the strongest markets.
So, it can be helpful to compare vacancy rates to the same quarters in previous years. In the final graph, we see the second quarter of this year compared to previous years. 2016's second quarter vacancy rate was higher than the previous year, but nevertheless remains near a ten-year low.