Denver Q4 Multifamily Market Insights: Investment Demand Spikes on Record Rent Growth


  • Despite a minimal vacancy increase at the end of the year, the Denver multifamily market recorded strong performance in 2021. Rents continued to rise throughout the region fueled by robust renter demand and an improving local labor market. Permitting activity spiked during the final months of the year, as developers moved new projects into the pipeline to meet renter demand.
  • Vacancy rose 20 basis points during the fourth quarter to 4.7 percent, although several submarkets reported vacancies below 3 percent. For the full year, the rate declined 140 basis points.
  • Asking rents increased at a rapid pace during 2021, advancing 16.2 percent to end the year at $1,755 per month. The pace of growth eased in the fourth quarter when rents rose 1.2 percent, similar to longer-term averages.
  • Investment activity in Denver gained momentum in the fourth quarter, outpacing levels recorded in recent periods. The increased investor demand resulted in sales prices trending higher during the year, with the median ending 2021 at $303,600 per unit. Cap rates averaged about 3.5 percent in the fourth quarter.

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