2023 Q2 Multifamily Market Report
Resilient and Promising Denver Metro Multifamily Market
Despite a decrease in sales volume compared to the previous quarter, the multifamily market in the Denver Metro area continues to exhibit impressive resilience and remains on a positive trajectory. This resilience is evident from the continued expansion in units under construction, which reached an impressive total of 36,974 by the end of the quarter. The absorption rate of units experienced a modest decline, decreasing from 2,351 to 1,936. This can be attributed to the elevated average monthly rent in Denver, which now stands at $1,835, up from the previous quarter’s $1,807. The elevated rental prices may have contributed to a slower absorption rate as tenants take additional time to find suitable units. Nonetheless, the decline in vacancy rates to 5.5% is an encouraging sign for landlords. A lower vacancy rate indicates a robust demand for rental units and fewer instances of vacant properties, which bodes well for property owners in the market. Looking ahead to the remainder of 2023, the outlook for the Denver Metro multifamily market remains optimistic. Forecasts predict sustained increases in positive absorption and asking lease rates. These projections indicate a continued strengthening of the market, presenting favorable prospects for both investors and property owners.