Metro Reports Multifamily Market Real Estate Trends

Denver Multifamily Market Report – Summer 2021

Denver Multifamily Market Report Summer 2021
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Recovery Well Underway

Colorado’s business-friendly environment, affordable cost of living, airport connectivity and tech ecosystem proved a winning combination for Denver’s multifamily market. Rents in the metro rose 2.0% on a trailing three-month basis through July to $1,715, outpacing the national average, which rose 1.6%, to $1,510. Occupancy in stabilized properties increased by 60 basis points in the 12 months ending in June, to 95.0%, due to demand for upscale units.

As of June, unemployment stood at 6.3%, trailing the 5.9% U.S. rate. Overall, Denver added 134,200 jobs in the 12 months ending in May, with slight contractions in the government, information and construction sectors. Metro Denver’s largest sector—trade, transportation and utilities—expanded by 9.7% during the period and is poised for additional boosts, thanks to Amazon, United Airlines and Fluid Truck. Professional and business services grew by 5.1%.

Developers had 22,566 units underway as of July. However, deliveries slowed down, with just 2,816 apartments added to the inventory in the first seven months of 2021. Meanwhile, transaction activity rebounded strongly, with the total reaching $3.8 billion through July, for a price per unit that rose to $314,411.

Read the full Matrix Multifamily Denver Report II-Summer 2021

About the author

Anca Gagiuc

Anca Gagiuc brings more than a decade of experience within the real estate industry. She is a senior associate editor with Commercial Property Executive and Multi-Housing News who also writes monthly multifamily reports at Yardi Matrix.

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