Research 5/ 9/ 2019

Denver Q1 Multifamily Market Report: After Several Strong Years, a Slower Start to 2019

Highlights:

1Q Denver market indicators
  • The Denver multifamily market got off to a slower start to 2019 than has been recorded in recent years. The vacancy rate inched higher even as the pace of new construction cooled. Rents continued on an upward trajectory, although the pace of gains has slowed in Class A apartments.
  • Apartment vacancy in Denver crept up 10 basis points in the first quarter to 6 percent. The rate is 20 basis points higher than one year ago. Vacancy last reached 6 percent in early 2017.
  • Asking rents rose 1.4 percent in the first quarter, and at $1,468 per month are up 4.5 percent year over year. Recent rent increases have been strongest in Class B and Class C properties.
  • Sales activity slowed during the first quarter, but the median price rose as transaction velocity gained momentum in newer buildings. Cap rates ticked higher to average 5.1 percent.

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