February 8, 2023

Denver Q4 Market Insights: After a healthy start, demand cools to close 2022

Highlights:

After posting mostly positive conditions throughout the first three quarters of 2022, the Denver multifamily market slowed at the end of the year. Rents inched lower, and the vacancy rate pushed higher.
Area vacancy rose 80 basis points during the fourth quarter, reaching 5.6 percent. The rate was steady throughout much of 2022, prior to the increase at the end of the year; for the full year, the rate rose 90 basis points.
Average rents trended lower in recent months, dropping 1.7 percent during the fourth quarter to $1,864 per month. Rent growth was particularly strong in the first half, and for the full year, rents rose 6.2 percent.
Multifamily sales activity continued to taper off in the fourth quarter, and the number of deals in 2022 declined 30 percent from last year’s levels. The median sales price for the full year was $300,200 per unit, down 12 percent from the median price in 2021.