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Category: Multifamily Tags: CO, David Treadwell, Denver, Hunter Matson

Denver, CO August Multifamily Market Report

Market Overview

Denver’s multifamily market is experiencing a period of instability; however, there are signs of positive momentum in 2023, as evidenced by an increase in absorption during Q2 2023 and consistent monthly rent gains since January 2023. Concerns about the impending recession and a decline in domestic migration are contributing to the market’s challenges. However, Denver is expected to set new supply records in 2023. The construction pipeline in Denver is robust, with a significant number of units under construction, primarily for Class A apartments. Downtown Denver is particularly affected by this increase in supply. Rent growth has significantly decelerated, especially in the luxury segment, caused by renters seeking more affordable options. Investment activity has also slowed due to high-interest rates and a competitive investment landscape. Denver’s apartment delivery timeline is expected to return vacancies to pre-pandemic levels in the following quarters.



  • The Denver multifamily market 12-month sales volume is $3.3B.
  • Developers are strategically focusing their efforts on creating vibrant live/work/play areas along Denver’s Regional Transportation District’s (RTD) Light Rail network.
  • Average price per unit is currently $323,000.
  • There was an annual net absorption of 7,133 units, ranking Denver ninth in the nation on a nominal basis.


Rents | Vacancy | Construction

Vacancies in the market are high, currently sitting at 7.3%, and are projected to exceed 9.0% within the next two years due to the hefty development pipeline. A persistent shortage of affordable single-family homes for sale in Denver has pushed many households to rent, providing tailwinds to the local apartment leasing environment. The region’s average rent has risen by 1.2% in the last year to $1,851 per month. Rent growth should continue to moderate from the highs recorded these past 12 months. Landlords will need to brace themselves for a supply wave that will impact the market in the future. Denver consistently rates among the top metros in terms of construction activity, with 33,863 units under construction, which is close to a record high. Once these projects are completed, Denver’s apartment inventory will grow by another 11.8%.



Private buyers are actively participating in the market, encompassing 90% of the sales this year, with large institutional players stepping back.


Although the influence of increased interest rates on Denver’s multifamily market is evident, promising indications suggest a path to recovery. The market has observed a decline in investment activity due to the complexities posed by elevated borrowing expenses and more stringent lending criteria for both buyers and sellers. Nevertheless, multifamily investment activity remains strong, as evidenced by a noteworthy $3.3 billion in sales volume recorded over the last year. The average market price per unit is currently $323,000 per unit. A notable transaction in 2023 was the sale of Vue West for $123.5 million in February. This deal was the only one so far this year to surpass the nine-figure mark.


Denver by the Numbers, Last 12 Months

  • Units Under Construction: 33,863
  • Vacancy Rate % Change YOY: 0.8%
  • Price Per Unit: $323,000
  • Sale Comparable: 185
  • Units Delivered: 10,404
  • Asking Rent % Change YOY: 1.1%
  • Sales Volume: $3.3B

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