Multifamily Quarterly Report

2021 Q3 Denver Multifamily Market Report

The Market is Poised to Close Out the Year Stronger Than it Started.

Denver’s vibrant economy, unrivaled outdoor scenery, and tranquil lifestyle has proved well for the city’s red hot multifamily market with another impressive quarter in the rearview. The market lacks neither tenants nor supply, as the city’s consistent growth of new residents is harmonized by the influx of new apartment buildings every quarter. Denver delivered more than 3,300 units in the last 90 days, the most the city has delivered in a quarter in the last two years. These new units will be leased up quickly with the high demand and low vacancy the city is experiencing. Vacancy stays on its downhill path for the year, dropping to the lowest the city has seen since 2014 at 5.35%. And with vacancy down, rental rates rise. Market rent’s increased more than $50/unit over the quarter, finishing out the 3 months at more than $1,700/unit. The high rents and low vacancy rates are alluring investors from all over to establish their footprint in the Denver market. There have been 5,448 units sold since July 1st in 32 transactions generating a sales volume of over $1.8 billion. Investment activity continued to show its appeal for yet another consecutive quarter. The city’s impressive growth rate, that is consistently stronger than the national average, bringing educated workers and large businesses to the area, has paved way for a successful and competitive multifamily market. Despite the rental season coming to an end, there are no signs the market is cooling headed into quarter 4.