COLORADO SPRINGS — A bit of a surprise for some, rent is back on the rise in Colorado Springs.
“There was some people with expectations that because of COVID, that would not be the case this year,” said Ron Thoupe, associate professor of real estate with the Burns School of Real Estate at the University of Denver.
According to a report from the University of Denver’s Daniels College of Business and Colorado Economic and Management Associates, overall rent increased by $27 in the second quarter.
Experts say it’s a time when rent typically increases.
“Rents go up with that strong demand and that’s really been the trend in Colorado since the Great Recession in the 2010, 2011, 2012 area,” Thoupe said.
Meanwhile, in Denver, renters are paying a bit less.
“We believe there we have more of a COVID effect where incentives to stay in place and not move has affected that market more than other markets,” Thoupe said.
The study also looked at Colorado tenants who haven’t paid rent from April to June this year.
The result was less than five percent.
“So far, we haven’t seen that percentage get too big and we haven’t seen what we call “additional economic loss,” which would be vacancy and delinquency. That hasn’t hit yet. Now that doesn’t mean it might not hit. At some point in time, you know people may hunker down and stretch it out for a while, and maybe they can’t do it forever,” Thoupe said.
Impacts on housing in the Pikes Peak Region could change as the fallout from the coronavirus pandemic continues.
Click below for a look at the full report: