Denver Multifamily Report – Winter 2021

The metro's rental market is poised for a sunnier 2021, thanks to its diversified economy and pre-pandemic strength,
Denver rent evolution, click to enlarge
Denver rent evolution, click to enlarge

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.

READ THE FULL YARDI MATRIX REPORT

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

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.

Read the full Yardi Matrix report.