Fort Collins Multifamily Development Report
Fort Collins by the Numbers
- Vacancy rate: 5.51%
- Absorption (units): 151
- Average rent: 1.6%
- Sales: $0
Last 12 Months | Source: CoStar
Absorption
During Q1 2024, absorption declined from 208 units to 171 units compared to the previous quarter. However, the trailing 12-month total absorption witnessed a slight uptick of eight apartments, reaching 1,392 units in Q1 2024. Notably, the metro-wide annual absorption across all property types surged to 2,906 units, marking the highest level achieved in the past two years. This data reflects a dynamic shift in the real estate market, indicating evolving trends in property demand and consumer behavior.
Vacancy
In Q1 2024, the vacancy rate for stabilized conventional properties with 50 or more units in the Fort Collins/Loveland/Greeley region rose by 17 basis points (bps) to 5.51%. This figure is 69 bps higher than the 4.82% rate recorded a year ago. Similarly, the trailing four-quarter average vacancy rate increased by 17 bps to 5.13%, marking a 64-bps increase from the previous year.
Considering properties in lease-up and stabilized properties, the overall vacancy rate climbed to 12.43% in Q1 2024. Although this current rate is 279 bps higher than a year ago, it aligns with the elevated construction levels observed from 2017 to 2020.
Vacancies across the four submarkets varied during Q1 2024. Notably, the Weld (WLD) submarket experienced a significant 100-bps point increase, reaching 6.57%, the highest in the region. Conversely, Loveland (LOV) witnessed the largest decrease, dropping by 76 bps to a regional low of 4.60%. These fluctuations reflect the diverse dynamics within the regional real estate landscape.
Market Concessions
The level of concessions offered to renters serves as a key indicator of market health. As of Q1 2024, concessions were notably low, reflecting the robustness of the local rental market. This suggests a favorable landscape for both landlords and tenants alike.
