During Q1, Denver metro Multifamily market fundamentals continued its struggle amidst a heavy construction pipeline. Excessive deliveries outpaced demand, driving vacancy higher and decreasing absorption. Rental rates also declined in Q1, however projections for future rates are bullish. The outlook for 2025 will remain vague until the current imbalance of supply and demand begins to resolve.

Key Takeaways

• Vacancy is up 20 basis points YOY, and forecasted to continue this increase during the rest of 2025.
• Absorption increased by 1,001 units, with a slowdown of construction starts in the market.
• Ongoing construction has increased by 1,113 units, with a decrease in deliveries over the past quarter.
• Average rent increased by $21, and is forecasted to slowly increase with
  added demand.