Continued Optimism in the Denver Market

The Denver Metro multifamily market continued to grow in Q1 2024, with vacancy down to 5.7% from 6.8% during the previous quarter. Demand for apartment space has increased, but the growing pipeline of multifamily space has vacancy rates projected to grow over the next year. Absorption has increased year-over-year from 1,847 SF to 2,635 SF, but is projected to decrease over the next year due to the surge of new multifamily deliveries. Construction activity remains steady, although it has decreased around 8,000 square feet YOY. This decrease in construction was expected after seeing a major increase post-pandemic. Average monthly rents are up slightly YOY, with Q1 effective rents at $1,831 across the Denver Metro. Asking rates will struggle to increase as this actively increased supply outpaces a slight increase in demand. The Denver Metro multifamily market is in a position to grow, but not until the pipeline pressure subsides.

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