Rental market update

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February 9, 2004 // UPDATED 2:50 pm - April 24, 2007
By: sue rich
sue rich

Despite the popularity of owner-occupied units, Downtown's rental market tightened in 2003. Also, like the condo market, the numbers reflect an increased need for smaller units.

According to the fourth quarter 2003 "Apartment Trends" report from the Residential Group of GVA Marquette Advisors, 333 S. 7th St., the overall vacancy rate in rental properties with 10 or more units declined from 10.3 to 6.8 percent.

Rents remained steady. On average, renters paid $1,040 in 2003, compared to $1,043 in 2002. (Studios averaged $542; one bedrooms $983; one-pluses $1292 and two bedrooms $858 in December 2003.)

While most average rents increased by just $2-$5 from their December 2002 rates, three-bedroom rents decreased. In December 2002 the average three-bedroom went for $1,273 -- in December 2003: $1,142.

In keeping, vacancy rates for studios dropped from 9.9 percent to 3.9 percent and of the 28 three-bedrooms surveyed, four were vacant, resulting in a vacancy rate of 32.1 percent compared to 2002's 14.3 percent in this category.

While Downtown's vacancy rate mirrored that of the Metro Region as a whole (6.6 percent), the average local rent was approximately $200 higher than the metro average of $845.