Denver 1Q23 Multifamily Market Insights: Fundamentals improve, but sales activity remains limited

Highlights:

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• Multifamily property performance metrics strengthened during the first quarter. The year ahead will be an active one for new development with more than 43,700 units currently under construction.
• Fueled by healthy absorption levels, area vacancy improved slightly in recent months — dipping 10 basis points during the first quarter to 5.5%. Year over year, the rate increased by 80 basis points.
• Asking rents inched higher to start the year, rising 0.4% in the first quarter to $1,872 per month. Despite some quarterly volatility, rents have advanced 4.7% during the past 12 months.
• Multifamily transaction activity continued to taper off, as sales volume in the first quarter dropped more than 25% from the previous period. The median sales price through the first three months of 2023 was $323,100 per unit, up 8% from the median price last year.

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