2022 Q2 Denver Multifamily Market Report
The Denver Multifamily market continued to show strong rental rates and renter demand in the second quarter. Yet again, Denver recorded positive absorption for the 53rd consecutive quarter emphasizing the continued strength and strong demand in the Mile High market.
Due to strong renter demand for apartments in Denver, the multifamily market had yet another positive quarter. The market demonstrated its strength through tightening vacancy numbers and rapid rent growth. This momentum carried through the last 90 days with another impressive quarter in the books. With the surge of migrants coming to Denver, it has forced more competitive rent, reaching $1,798 average monthly rent compared to last quarter of $1,764. In order to meet the demand for new renters, multifamily developments have ramped up construction to more than 24,279 units. On top of that, Denver delivered 2,202 units during the second quarter with a small change in vacancy rate, which now dipped below 6% for the first time in 3 quarters. Absorption is on a steady climb this quarter at 3,308 units, a strong increase over the 1,649 units absorbed during the first quarter, and there are no signs of slowing. Investors are attracted to these beneficial metrics in the Denver market as the second quarter alone recorded 30 transactions generating $1.7 billion in sales volume. Deliveries also look to continue to ramp up as the market rides another positive quarter and looks to have a strong second half for Denver multifamily.