Fort Collins, CO - 0.2% such low vacancy rate

10 Replies

Wondering what makes Fort Collins, CO has such low vacancy rate? In San Jose, it is the high pay IT job. What is in Fort Collins?

There are several factors that make Northern Colorado and Fort Collins specifically such a strong market for real estate sales and rentals.

We have great, diverse job base including a huge tech, healthcare, breweries and university for jobs.

We're consistently named as a top place to live attracting employers and workers to consider the move. Part of it is weather with 300 days of sunshine a year, part is low crime and part of it is great local culture.

We are a growing University town with a good number of students and more coming each semester.

There probably are a bunch of other reasons, but that's a few good ones.

I will also mention, since I track stats on rentals for my clients that we have seen a slight softening of the rental market (which is partly seasonal). This is NOT to say that the rental market is not still super strong, but it is not the crazy insane rental market we've seen recently.

For example, here are rents by week for single family homes in Fort Collins (all bedroom configurations).

Also, when we run our analysis numbers, we still recommend (and use) 3% for vacancy and strongly recommend investors start looking for tenants at least 60 days prior to your current lease expiring.

The one thing I'd add to the above is the growing number of retirees in Fort Collins.  We are always listed as a top destination to retire due to the weather, activities, cost of living, etc.  Northern Colorado is growing like crazy and at the moment does not have the housing to support those who want to be here.    

I have a 3bd 2ba very clean cul-de-sac house in Harmony Crossing in Fort Collins that has been VACANT for 4 months, priced very competitively. ~1-2 showings a weekend, but there is a lot of competition out there since mid summer...

Mark, I bet you are having some trouble because of the location.  The farther you get from the heart of Fort Collins (old town/campus), the harder it is to rent.  However, with the trend of Fort Collins turning into a busy busy city, I bet down the road, it wont be much of an issue.   

I used turbotenant.com top post my listing and had a ton of applicants.  They post your site on multiple websites and assist with the application process.  

Originally posted by @Mark Kinde :

I have a 3bd 2ba very clean cul-de-sac house in Harmony Crossing in Fort Collins that has been VACANT for 4 months, priced very competitively. ~1-2 showings a weekend, but there is a lot of competition out there since mid summer...

Hi Mark... yes, we are definitely seeing a softening (some of it seasonality). Have you run your numbers to see if holding out for the higher rent is worth the added vacancy? I'm curious what you came up with.

Thanks.

@James Orr    @Corey Moore   @Mark Kinde @Logan McConnell

Thank you everyone, it is the best to ask local people for most update and accuracy information. Even the vacancy rate is 3% which is still very low. 

I have checked Zillow, i think the area call East Dale is within my budget for investment, also close to downtown and also CSU. 

Want to now what class of area is that? Do you think this area has low vacancy rate? Do you recommend other area over then this area?

I am still seeking a place, a state for investment. Still not yet decided which state to go for. Thank you

Thanks @Peter Sik .

> Thank you everyone, it is the best to ask local people for most update and accuracy information. Even the vacancy rate is 3% which is still very low.

You're welcome. Yes... realize that I feel really comfortable using 3% IF you're going to commit to start finding a tenant at least 60 days prior to your current tenant's lease expiring.

> I have checked Zillow, i think the area call East Dale is within my budget for investment, also close to downtown and also CSU.

Cool. I'm not super familiar with that area as it is not an area that my investors or I have bought in. Over the years, we've looked at properties in there, but none where the numbers made sense to us.

> Want to now what class of area is that? Do you think this area has low vacancy rate? Do you recommend other area over then this area?

Decent area. I don't personally have any data to suggest it has higher than normal vacancy. It is a relatively tiny area. If it were me, I'd consider a much larger area.

> I am still seeking a place, a state for investment. Still not yet decided which state to go for. Thank you

You're welcome. Hope that helps.

James, rent is a bit under market (~$100/mo).  Definitely missed the seasonality window in the summer, however, had tenants until July, then a rehab project for a month, so no choice.  We shall see.  First time in 20+ years I have had a unit vacant more than 30 days.

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