Denver Q1 Multifamily Market Report: Absorption Gains Momentum to Start 2021

Highlights:

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• The Denver multifamily market got off to a healthy start to 2021, with absorption ahead of last year’s pace, vacancy tightening, and rents rising.
• Vacancy inched lower in the first quarter, with the rate ticking down 10 basis points to 6 percent. The rate has declined 20 basis points year over year.
• Rents rose 1.2 percent during the first quarter, ending the period at $1,528 per month. Current rental rates are nearly identical to levels from one year ago.
• A steady pace of investment activity was recorded in Denver during the first quarter. The median price continued to push higher, reaching approximately $285,500 per unit, while the average cap rate compressed to 4.3 percent.

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