Only Longmont, where vacancies were 11.6 percent, and northern Douglas County, where they were 14 percent, had rates that topped 5.2 percent. Approximately 1,115 new apartment units were available for rent in the first quarter. Those who can only afford to pay the least face the most difficulty finding a place, said Lauren Brockman, president of the apartment association. The tight market, coupled with rising energy prices, labor costs and the increased amenities provided in apartment communities is driving rents up as well, Von Stroh said. Though rents are rising, they aren't going up as quickly as home prices in the metro area.
Developers complain that Colorado's restrictive growth policies have caused the shortage.
Getting building permits from local jurisdictions can take several years, and many areas are off-limits for new development, Brockman said. The length of time before a piece of property can be developed increases financing and other costs. As a result, developers target well-heeled renters because the units cost more to build, he said. A 5 percent vacancy rate is considered equilibrium in the housing market - the point where renters have choices and property owners can get a decent return on their investment. That rate shrunk to 14 percent in the first part of 2001.