Denver Rental Market Stays Elevated
Powered by a recovering economy, Denver’s multifamily market saw a steady performance in 2022, with sustained rent growth, substantial investment activity and consistently solid construction across the metro. Demand kept up with supply additions, with rents rising 1.2% on a trailing three-month basis through July, to $1,941, but the occupancy rate in stabilized properties was slightly impacted, declining 30 basis points in the 12 months ending in June, to 95.4%.
Denver unemployment stood at 3.2%, faring better than both the U.S. (3.6%) and the state (3.4%), but the market is still nowhere near pre-pandemic levels. Even so, the metro recovered nearly all jobs lost during the health crisis, with the employment market expanding 5.3% in the 12 months ending in May, adding 92,500 jobs. Professional and business services—Denver’s largest sector—led growth with 29,700 positions. Leisure and hospitality continued its rebound with 26,600 new jobs. Moreover, Denver International Airport’s passenger volume in the first half of 2022 was just 1.6% below that of the same period in 2019.
Development activity moderated slightly, but still posted consistent numbers: 4,424 units delivered through July and 29,000 units were underway. Meanwhile, sales volume reached nearly $2.9 billion, trailing the figure registered during the same period last year. The price per unit increased by 9.4% on an annual basis
Read the full Matrix Multifamily Denver Report-September 2022