Denver Q3 Multifamily Market Report: Rents Spike as Vacancy Dips to Lowest Point Since 2015
Highlights:
- The Denver multifamily market posted strong results in the third quarter, building on gains recorded during the second quarter. Absorption has been particularly strong, driving the vacancy rate to a six-year low and fueling steep rent increases.
- Vacancy dropped 40 basis points to 4.5 percent during the third quarter. The rate is down 130 basis points year over year.
- Rents rose nearly 7 percent during the third quarter, following an increase of more than 6 percent in the preceding quarter. At $1,734 per month, current rents are up 13.5 percent from one year ago.
- Investment in multifamily properties in Denver continued to trend higher in the third quarter. Activity to this point in 2021 has doubled levels from the same period one year ago. The increased investor demand has caused prices to spike and cap rates to compress below 4 percent.
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