Denver Multifamily Remains Resilient

Standing at the forefronts of a recession, the multifamily market remained resilient and had yet another positive quarter to close out 2022. Although this is the lowest absorption the Denver market has seen since 2016, it still remained positive for the 55th consecutive quarter at 586 units. This is most likely in response to the high average asking rent that currently defines Denver at $1,784, a 3.2% increase from 2021. The asking rate in Denver recorded a slight decrease quarter-over-quarter from its record high during the middle of 2022, but forecasts predict a slight increase in rent growth to come in 2023. Vacancy rates decreased by 40 basis points to 5.6%, likely correlated with the prolonged rental rate spikes as well. The multifamily market can expect to remain strong throughout the start of 2023 as forecasts project a steady climb in absorption, construction, and asking lease rates.