Condominium construction continues to be depressed

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Unformatted text preview: partment vacancy rates were around 5% in Q3 2011, down by at least half a percentage point from a year earlier. Vacancy rates remain higher in Grand Junction and Pueblo, but those markets tightened as well. The “shadow market” of single-family homes and condominiums for rent continues to be a significant presence. As vacancies declined, landlords have gained pricing power. In most of the Front Range metro continued on page 32 31 2012 Colorado Business Economic Outlook Construction continued from page 31 areas, average rents have increased by more than 4% from 2010, and in some of the tightest rental markets, concessions at apartment communities have all but disappeared. The tighter rental market has generated heightened interest among apartment developers, but financing continues to be a major constraint. A large number of projects, totaling several thousand units, are in various stages of planning, but many will be unable to put deals together. However, a stronger market for federal tax credits has improved the feasibility for income-restricted projects. Despite growth in rental demand, mul...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.

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