- The Denver multifamily market recorded mixed performance in the fourth quarter. Vacancies rose and rents contracted, but absorption was much stronger than in previous fourth quarters, and the investment market gained momentum. After a volatile 2020, greater stability is likely in 2021.
- The local vacancy rate ticked higher at the end of the year, following a sharp vacancy decline in the third quarter. Vacancy rose 30 basis points to 6.1 percent in the fourth quarter; for the full year, vacancy rose 20 basis points.
- Quarterly rent trends in 2020 were uneven, but asking rents ended 2020 at essentially the same level as they were at the beginning of the year. Rents fell in the fourth quarter, dipping to $1,510 per month. Most suburban submarkets recorded rent increases in 2020.
- The local investment market strengthened at the end of 2020. Property sales in the fourth quarter outpaced levels from the first nine months of the year combined, prices rose, and cap rates compressed.