Students from Colorado State University are a large driving force for historically low vacancy rates in Fort Collins. Fort Collins, especially near CSU, has had vacancy rates under 5% for decades. While Fort Collins remains under 5% vacancy, the number has started to slide. The two factors that we need to look into are supply and demand.

Supply

New apartment complexes have just come online for this semester of student housing. Union on Elizabeth is a 107-unit, 402-bedroom complex that completed construction in July. The Standard on Prospect is an 83-unit, 294-bedroom complex that was just built as well. New Wyatt apartments, 365 units, opened in April 2019 near I-25 and Harmony Road. The Wyatt apartments are only 82% occupied according to assistant manager Nancy Richardson. This increase of inventory has increased vacancy rates across the city.

Demand

Demand for housing coming from the student population has dropped. CSU has reported a 5% drop in enrollment and this number could increase in the first few weeks of school. Students living in residence halls has also dropped from the expected 5,576 students to 4,962. For reference, both these numbers are below their last fall occupancy of 6,300. With online classes some students are opting to stay home and not come back to Fort Collins.

Rent

Rent has not changed while vacancies increase. The median rent for the quarter decreased $16 to $1372, which only represents a 1% decrease. Fort Collins still remains near the high end of rent per square foot in the state. Mark Williams, executive vice president of the Colorado Apartment Association, says that our vacancy and rental rates are in line with other college areas like Boulder and Denver University. In fact, Fort Collins’s vacancy was affected the least out of all three colleges.

People are still moving to Colorado and Fort Collins still has an incredibly resilient housing market. Inventory of homes for sale is historically low and prices remain strong. If you are looking to purchase a home or an investment property you will need an experienced realtor to navigate the current real estate climate. Contact Angie for any further questions about the Fort Collins real estate market!

Source: The Coloradoan