Denver Multifamily Report – Summer 2021, Part 2
After a rocky 2020, rents are once again rising at an accelerated pace.
Denver rent evolution, click to enlarge
Colorado’s business-friendly environment, affordable cost of living, airport connectivity and tech ecosystem proved a winning combination for Denver’s multifamily market. Rents in the metro rose 2.0 percent on a trailing three-month basis through July to $1,715, outpacing the national average, which rose 1.6 percent, to $1,510. Occupancy in stabilized properties increased by 60 basis points in the 12 months ending in June, to 95.0 percent, due to demand for upscale units.
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Denver sales volume and number of properties sold, click to enlarge
As of June, unemployment stood at 6.3 percent, trailing the 5.9 percent U.S. rate. Overall, Denver added 134,200 jobs in the 12 months ending in May, with slight contractions in the government, information and construction sectors. Metro Denver’s largest sector—trade, transportation and utilities—expanded by 9.7 percent during the period and is poised for additional boosts, thanks to Amazon, United Airlines and Fluid Truck. Professional and business services grew by 5.1 percent.
Developers had 22,566 units underway as of July. However, deliveries slowed down, with just 2,816 apartments added to the inventory in the first seven months of 2021. Meanwhile, transaction activity rebounded strongly, with the total reaching $3.8 billion through July, for a price per unit that rose to $314,411.
