During Q4, the Denver Metro Multifamily market took a slight hit, with an increase in vacancy during the quarter and a further increase projected over the next year. With new units being delivered, construction activity decreased during the quarter. Absorption decreased, showing a softening demand in the market. Rent continued to decline during Q4 but is projected to increase during 2025. The Denver market is headed towards uncertainty in 2025, with an imbalance in supply and demand providing a cloudy outlook.

Key Takeaways

• Vacancy is up 50 basis points YOY, and forecasted to increase during 2025.
• Absorption decreased by 1,672 units, with new deliveries coming into the market.
• Ongoing construction has decreased by 2,835 units, with units being delivered over the past quarter.
• Average rent decreased by $51, but is forecasted to slowly increase with added demand.