July 18, 2023

Denver 2Q23 Multifamily Market Insights Report: Vacancy ticks lower again in 2023, rents on the rise

Highlights:

Multifamily property fundamentals in Denver strengthened during the second quarter, as rent growth accelerated, and the vacancy rate improved slightly. Apartment developers have been active, completing more than 6,500 units thus far in 2023.
Area vacancy tightened slightly in recent months, dipping 10 basis points during the second quarter to 5.4%. This marked the second consecutive quarter when vacancy fell 10 basis points. Despite the recent tightening, the rate is up 60 basis points year over year.
Local apartment rents rose at a healthy pace in recent months, increasing 1.8% during the second quarter to $1,905 per month. Rents are also up 1.8% during the past 12 months.
Multifamily deal volume inched higher in the second quarter, but transaction counts are down about 60% from the first half of last year. The median sales price thus far in 2023 is $281,200 per unit, 5% lower than the median price last year.