Denver’s multifamily market is looking to restore some stability after a rough 2020. Rent gains were spotty across the map, but the average remained flat on a trailing three-month basis for the second consecutive month in November at $1,544—above the $1,465 national figure.
Prior to the pandemic, Denver’s economic environment had been attracting residents and businesses alike, which helped create a diverse economy. This helped it better withstand the health crisis, making it one of the metros with the fewest job losses in the country during the recovery stage. Unemployment fell to 6.5 percent in September and preliminary data for October pointed to stagnation, but a recent spike in coronavirus cases could affect the local economy as new restrictions were enforced in November. Employment growth was down 6.5 percent in the 12 months ending in September, outperforming the -9.3 percent national average. Three sectors added jobs during the period, including the metro’s economic driver, professional and business services, which climbed 0.6 percent.
Despite safety measures, development activity remained high—developers brought online 11,728 units in 2020 through November and had another 19,406 underway. Meanwhile, transactions picked up in the third quarter and totaled nearly $3.4 billion, for an average price per unit that slid 4.4 percent to $231,244.