Resilience Persists in the Denver Market

Despite sales volume slightly slowing compared to the previous quarter, the multifamily market in the Denver Metro area exhibited exceptional resilience and had yet another positive quarter. This was evidenced by the increase in square footage under construction, which rose to 31,129 by the end of the quarter. Furthermore, absorption experienced an uptick from last quarter, climbing from 724 to 2,028 units. This absorption was despite average asking rent continuing to grow in Denver, which presently stands at $1,794, up from last quarter’s $1,763. Further evidence of the landlord-friendly market can be seen in the decline in vacancy rates to 5.6%. The outlook for the rest of 2023 is encouraging, with forecasts predicting sustained increases in positive absorption, square footage under construction, and asking lease rates, further strengthening Denver Metro’s market.