Apartment Supply Scheduled to Surge in Colorado Springs
Apartment developers are flocking to the relatively small Colorado Springs market, which is roughly one-sixth the size of nearby Denver. During the past five years, Colorado Springs saw an average of less than 1,000 units deliver annually, expanding inventory an average of 2% each year, according to data from RealPage Market Analytics. That average annual expansion pace was on par with the U.S. average (1.8%). However, completions in Colorado Springs are expected to accelerate in the coming year, as roughly 4,200 units are scheduled to complete through 2nd quarter 2023. That new supply volume would increase the market’s existing inventory 8%, ranking Colorado Springs #4 in the nation for inventory expansion. That annual inventory growth pace is double the expected delivery pace in Denver (4%) and well above the U.S. average (2.6%). The influx of new supply isn’t expected to dampen fundamentals in Colorado Springs, as the market is expected to easily absorb the new units due to a booming population which grew 16% from 2010 to 2020, more than double the national average. As of 2022’s 2nd quarter, occupancy in Colorado Springs clocked in at 95.8%, with annual rent growth at 11.2%.