Denver Multifamily Report – Summer 2021

With the market recovering, the Mile-High City has more than 20,000 apartments underway.
Denver rent evolution, click to enlarge
Denver rent evolution, click to enlarge

As Denver gradually enters its recovery phase, local authorities are implementing Denver’s Rebuilding for an Inclusive and Sustainable Economy plan—dubbed RISE Denver—over the coming months. As the metro lays the groundwork for a phased rebound, multifamily rates have also begun to improve: As of April, rents were up 0.5 percent on a trailing three-month basis, to $1,578, above the $1,417 U.S. average.

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As of March, unemployment stood at 6.4 percent in Colorado and 6.7 percent in metro Denver, both slightly above the 6.0 percent March national rate, according to preliminary data from the U.S. Bureau of Labor Statistics. Aimed at addressing the heavy employment loss in the city and focused on the hardest-hit businesses, workers and communities, one of RISE Denver’s main priorities is to create 40,000 jobs by the end of 2022. Furthermore, as part of the recovery strategy, Mayor Michael B. Hancock will send a proposal for a $400 million bond package to city council for referral to the November ballot.

Denver sales volume and number of properties sold, click to enlarge
Denver sales volume and number of properties sold, click to enlarge

Denver had 21,185 units under construction as of April, with 81 percent of those targeting high-income renters. The largest share (68 percent) of the pipeline is expected to come online by year-end. Meanwhile, investment sales were off to a strong start in 2021, with 22 assets totaling 4,768 units sold for a combined $1.3 billion in the first four months of the year.

Read the full Yardi Matrix report.