Denver Multifamily Report – June 2024
New construction was the only lagging fundamental going into summer.
Denver’s multifamily fundamentals were firm at the beginning of the second quarter. After starting the year in negative territory, advertised rents rose 0.4 percent on a trailing three-month basis through April, to $1,925. On an annual basis, advertised rates recorded even stronger growth, up 1.0 percent. Despite a slight decline, the metro’s average occupancy rate in stabilized assets stood at 94.7 percent, ahead of the national figure.
Denver’s unemployment rate was 4.2 percent as of February, according to data from the Bureau of Labor Statistics. The figure was 30 basis points higher than the national average. A joint venture between the city of Denver and Denver County aims to boost economic growth downtown. The partnership plans to expand the current Downtown Development Authority, which is expected to generate $500 million to be used for revitalizing downtown Denver. The DDA highlighted that no residential properties have been developed in upper downtown since 2020. As such, capital investment will focus on increasing housing, among other initiatives.
Developers brought 3,358 units across 15 properties online in the first four months of the year. Mirroring development, completions skewed toward the upscale segment, which had some 42,000 units under construction. Investors were active as well, with nearly $1 billion in assets trading. Denver’s average price per unit settled at $289,633, well above the national average of $181,913.
