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Category: Multifamily, Report Tags: CO, David Treadwell, Denver

Denver, CO Multifamily Market Report | April 2023

Market Overview

Denver’s apartment industry has undergone changes in market dynamics. Despite experiencing exceptional demand and significant rent growth in 2022, there has been a noticeable decline in market fundamentals since the start of 2023. The decrease in activity is due to the impact of inflation on potential renters’ finances, increasing interest rates making investors more wary, and ongoing concerns about an economic downturn.

Although fundamentals have cooled, investors are still planting capital into the sector, with $5 billion in sales volume over the past 12-month period. This is still above the historical 12-month rolling average of $3 billion but less than the peak occurring from Q2 2021 to Q1 2022, where sales volume reached $10.9 billion over a 12-month period. The absorption slowdown coincides with an increased building pipeline, setting Denver up for a record number of units currently under construction. Denver’s apartment delivery timeline is expected to return vacancies to pre-pandemic levels in the following quarters.



  • The current construction pipeline of 31,000 units is an all-time high for the market and will result in a 10.9% rise in Denver’s housing supply.
  • Over the past year, the average rent in the area has increased by 1.7%, bringing it to $1,820 per month.
  • In the past 12 months, Denver has absorbed approximately 7,200 units, which positions it as one of the leading 15 metros in the country in terms of absorption.


Rents | Vacancy | Construction

Vacancies in the market are high, currently sitting at 7.3 percent, and are projected to exceed nine percent within the next two years due to the hefty development pipeline in 2023. 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. Landlords will need to brace themselves for a supply wave that will impact the market in the future. Denver now rates among the top metros in terms of construction activity, with a record 31,000 units under construction. The region’s average rent has risen by 1.7 percent in the last year to $1,820 per month. Rent growth should continue to moderate from the highs recorded these past 12 months.



Investors have not steered away from investing in multifamily, with $5 billion in sales volume recorded over the past 12 months. The fierce competition for multifamily assets in Denver has resulted in significant market price appreciation. The average market price per unit is currently $360,000. As investors flood into the area, cap rates have tightened, making it more difficult for investors to find yield.


Investors have shown a strong interest in downtown Denver, and high-quality properties are being sold at a substantial premium.


By the Numbers

  • Units Under Construction: 30,727
  • Units Delivered 12 Months: 10,523
  • Vacancy Rate % Change YOY: 0.9%
  • Asking Rent Growth YOY: 1.7%
  • Average Price Per Unit: $360,000
  • Sales Volume 12 Month: $5B
  • Sales Comparables 12 Month: 241

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