One of the strongest metros for tech development over the past decade, Denver has benefited from a strong multifamily market that improved in leaps and bounds, even weathering the pandemic better than larger markets. Coming on the heels of 2021—when average asking rates increased by 1.2 percent on a monthly basis—rent expansion softened in the winter. However, through spring, rates rose again to 0.7 percent on a trailing three-month basis as of April, to an overall average of $1,847. Occupancy rose 50 basis points in the 12 months ending in March, to 95.4 percent.
Denver unemployment improved 40 basis point since the start of the year, clocking in at 3.6 percent in March, on par with the U.S. rate and 10 basis points ahead of the state, according to data from the Bureau of Labor Statistics. The employment market expanded by 5.1 percent in the 12 months ending in February, or 106,200 jobs, leading the 4.7 percent U.S. rate. Good strides were recorded in the metro’s largest sectors—professional and business services (27,000 jobs) and trade, transportation and utilities (12,700 jobs), both poised for sustained expansion.
Developers delivered 1,624 units in 2022 through April, below the volume of previous years during the same period, but there were another 26,000 units underway. Investors traded more than $1.5 billion in multifamily assets, on par with 2021.