Denver, CO Multifamily Market Report Q2 2026
Denver Absorption Jumps 58% as Rents Extend a Two-Year Slide
Demand
Denver’s demand recovery is accelerating. Net absorption jumped to 5,902 units in Q2, up 58.0% YoY and nearly 3x the 2,020 units delivered the same quarter, bouncing back strongly after a soft patch in late 2025. That surge in leasing pulled vacancy down sharply, from 6.84% in Q1 to 5.74%, the lowest reading in over a year. Rent is following the same trajectory. Growth has improved for three consecutive quarters since bottoming at -6.2% in Q3 2025, easing to -4.7% YoY. Occupied stock climbed to 343,399 units, and with absorption now running well ahead of new supply, Denver looks to be turning the corner.
Supply
Builders delivered 2,020 units in Q2, down 31.0% YoY, and TTM completions fell 43.2% to 9,201 units, down from the 18,558 delivered in 2024’s record year. Units under construction have fallen to 15,493, the lowest in at least five years and well below the 10.02% peak reached in Q4 2022. That pipeline has been shrinking for six consecutive quarters, and with little left in the ground, 2024’s oversupply looks like it will finish working through the system without a second wave.
Investment Market
TTM volume fell 43.2% YoY to $2.8B, and Q2’s $288.8M was down 43.7% from a year ago. This is one of the steepest volume declines across the nation.
Cap rates ticked up modestly to 5.36%, while price per unit slipped to $259,956, down 16.9% from the 2022 peak of $312,953. That combination of falling volume and falling price suggests Denver is still searching for a floor on valuations.
Volume
- $2.8B TTM volume (-43% YoY)
- Q2 2026: $289M
- One of the steepest pullbacks
Pricing
- Q2 cap rate 5.36%
- Q2 price per unit $260k
- Rent growth negative for a 3rd straight quarter
