At least 151 apartment units are on track to be built in Durango during the next two years, but housing and building officials say the new construction will barely make a dent in demand for local rentals.
Late this summer or in early fall, the 50-unit Lumien Apartments will open at 32nd Street and East Animas Drive. The building is under construction by FCI Constructors of Durango.
Rents will range from approximately $500 to $850 per month, said Karen Iverson, executive director of the Regional Housing Alliance.
The list of interested renters waiting to apply is lengthening, Iverson said.
“It’s a much-needed project, but it’s just the beginning of fulfilling the need for rental units,” she said.
Rents in Durango surged to $1,214 in the third quarter of 2014, up from $883 during the first quarter, according to a Colorado Department of Local Affairs survey. The vacancy rate actually rose a little bit to 2.7 percent, up from 1.2 percent.
An even larger complex is slated for Three Springs pending additional approvals. The Confluence Park Apartments, formerly known as Arterra, would have 101 apartments as currently envisioned.
Confluence Park would have 54 two-bedroom apartments and 47 one-bedroom units. At Lumien, the 50 apartments will be evenly split between one- and two-bedroom units.
Three Springs conducted a market analysis that confirmed demand for apartments in Durango, said Patrick Vaughn, president and chief operating officer of GF Real Estate Group, a division of the Southern Ute Indian Tribe Growth Fund that oversees development at Three Springs.
“Clearly, that’s the major reason that we’re doing it is the need for apartments in the market and the fact there hasn’t been any new product built in 20 years,” Vaughn said.
Construction is expected to begin in late April or May and be completed in mid-2016, he said.
The apartment complex – combined with 2,800 square feet of commercial space – complements the larger vision for Three Springs, Vaughn said.
Nationally, more young people are delaying marriage, having children and buying homes, increasing the demand for rental housing. Meanwhile, a tough job market for millenials and student-loan debt continue to pose hurdles for many potential homebuyers.
“Some people prefer the flexibility that a lease gives them versus owning a house,” Vaughn said.
Durango also remains an expensive market to buy, Vaughn said. Last year, Durango homes fetched a median sales price of $400,000, according to Durango Area Association of Realtors data.
cslothower@durangoherald.com
