Denver Q2 Multifamily Market Report: Absorption Concentrated in Suburban Submarkets
Highlights:
- The Denver multifamily market softened during the first half of 2020, with the vacancy rate rising. Renter demand was positive in the first half but lagged the pace of new inventory growth.
- Vacancy rose 50 basis points in the first half of the year, reaching 6.4 percent. The rate is up 120 basis points year over year.
- Asking rents ended the second quarter at $1,512 per month, identical to the figure one year earlier. Rents rose in the first quarter before dipping in the second quarter.
- Projects totaling approximately 4,500 units were delivered during the first half of this year, similar to the figure from the same period in 2019. There are approximately 22,000 units currently under construction.
- Sales activity slowed during the first half, particularly in the larger assets favored by institutional investors. In deals that closed, the median price was $202,200 per unit, while cap rates averaged 4.9 percent.
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