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

July 2023 Denver Multifamily Market Report

Denver, CO 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. Despite the recent data, concerns about the impending recession are ongoing, causing individuals to postpone household formation. Although fundamentals have cooled since the beginning of 2022, investors are still planting capital into the sector, with $3.1 billion in sales volume over the past 12-month period. The construction pipeline in Denver is robust, with a significant number of units under construction, leading to a rise in vacancy rates. Downtown Denver is particularly affected by this increase in supply. Rent growth has significantly decelerated, especially in the luxury segment. 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 current construction pipeline of 35,491 units nears record highs for the market.
  • The Denver multifamily market saw sales of $3.1B within the past 12 months.
  • 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 $304,000.


Rents | Vacancy | Construction

Vacancies in the market are high, currently sitting at 7.8%, and are projected to exceed 9.0% 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 consistently rates among the top metros in terms of construction activity, with 35,491 units under construction, which is close to a record high. Once these projects are completed, Denver’s apartment inventory will grow by another 12.3%. The region’s average rent has risen by 0.8% in the last year to $1,850 per month. Rent growth should continue to moderate from the highs recorded these past 12 months.



The Thornton region has become particularly popular, where the demand from renters remains strong, primarily driven by the area’s affordability.


Despite the impact of higher interest rates on Denver’s multifamily market, positive signs indicate potential for recovery. The market has experienced a decrease in investment activity as buyers and sellers navigate the challenges of rising borrowing costs and stricter lending standards. However, Investors have not steered away from investing in multifamily, with $3.1 billion in sales volume recorded over the past 12 months. The average market price per unit is currently $304,000 per unit. Notably, private buyers are actively participating in the market, encompassing 90% of the sales this year, with large institutional players stepping back.

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