Denver Multifamily Report – Fall 2019
The city's solid demographic growth and steady economic expansion have kept demand strong.
Denver rent evolution, click to enlarge
Denver’s solid demographic growth and steady economic expansion have kept demand strong. As a result, occupancy has remained high, despite a large number of apartments delivered in the metro. Some 7,100 units were added to the Mile High City in 2019 through September, following an even more active 2018, with 16,151 new units completed. Even so, the occupancy rate in stabilized properties slid slightly to 95.2 percent as of August.
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Employment growth softened to a 1.7 percent rate year-over-year through July, on par with the national figure, but falling below the 2.0 percent mark for the first time since 2011. The metro’s economy is diversifying, and the highly educated workforce has helped attract businesses. Employment growth over the past 12 months was led by the professional and business sector, which added 13,700 jobs, followed by the education and health services sector (6,500 jobs) and leisure and hospitality (5,400 jobs).
Denver sales volume and number of properties sold, click to enlarge
Investors spent nearly $3 billion on multifamily assets year-to-date through September, with a per-unit price that rose 2.6 percent year-over-year to $246,672. The most sought-after submarket remained the CBD/Five Points/North Capitol Hill area, leading in transaction volume, deliveries and units under construction.
