Denver Multifamily is Thriving

Covid vaccinations are finally available to the entire population and the state is returning to a pre-pandemic normalcy. With 51.7% of Coloradoan’s vaccinated, Covid restrictions are becoming a thing of the past. The Colorado unemployment rate has reached a 12-month low at 5.9% in May compared to 11.6% at this time last year. While the retail and office markets are slower to recover from the pandemic, the multifamily market is stronger than ever, recording one of the best quarters in the past five years. There have been 7,553-units sold since April 1st, including five transactions over $100 million, generating a total sales volume of over $2.2 billion. Apartment complexes are not only selling rapidly, but also constructing rapidly. Five properties totaling over 1,400 units delivered during Q2. These newly constructed units are in high demand as, despite the increase in inventory, vacancy has reached a 12-month low this quarter at 5.8%. With the demand to live in Denver only strengthening, rent is up 10% YTD, outperforming the nation for the first time since the start of the pandemic. Absorption also recorded historic numbers this quarter, even with the city still recovering from the pandemic. The outdoor amenities, booming economy, and young crowd in tandem with the influx of companies moving to Denver is what makes Denver so attractive to people, and with the red-hot housing market making it very difficult to buy a house, the multifamily market has thrived. The Denver multifamily market should ride the momentum of an outstanding second quarter through the rest of the year.