COLORADO SPRINGS — The latest information from the University of Denver's College of Business shows that Colorado Springs rent prices continue to climb for the tenth quarter in a row, with the average rent reaching over $1,500 per month.
According to the report, 5% of housing in the area is unoccupied and available for renters to move into. With such a limited supply, apartment owners and managers can dictate rent prices.
However, the supply of available houses is on the rise. The number of permitted dwellings has boomed since 2020 in Colorado Springs, according to numbers from the Pikes Peak Regional Building Department. The number of dwellings in 2021 more than doubled those permitted in just a year before, with 3,887 dwellings in 2021 compared to 1,591 dwellings in 2020. In 2009 there were zero recorded permits for housing. Data recorded up until June 30, 2022, shows 3,051 dwellings permitted already.
Luke Teater, a housing economist said with the development of more housing options, the gap between supply and demand will close.
"I think that's the biggest factor driving up cost right now, is just that imbalance between the number of people looking for homes in Colorado Springs and the number of homes that are available. And so increasing that will really relieve a lot of that pressure and should, should slow down the rent growth going forward," Teater said.
However, as supply increases, he said there needs to be a balance of both homes that are priced at the market rate and also affordable housing options for those with lower incomes.
Angela Roberts works with the Colorado Springs Housing Navigator Network, a group that helps match lower-income individuals with landlords who have low rent to hopefully broaden the supply of housing. However, she said it can be tricky working with landlords because they ultimately have a business to run.
"We want to be forthcoming with landlords. We respect their business. We're not asking for them to lower their rent by $300 because we know that they can get someone who's willing to pay for it," she said.
Teater said during a housing shortage, rent rises the fastest in low-income neighborhoods, hitting those individuals the hardest. He said in the future rent will not come down, but with more supply of houses, prices could stabilize.
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