Robust Pipeline Continues To Define Denver
Denver’s multifamily fundamentals were firm at the beginning of the second quarter, notes the latest Denver multifamily market report. After starting the year in negative territory, rents rose 0.4% on a trailing three-month basis through April, to $1,925. On an annual basis, rates recorded even stronger growth, up 1.0%. Despite a slight decline, the metro’s average occupancy rate in stabilized assets stood at 94.7%, ahead of the national figure, according to the U.S. multifamily market report.
Denver’s unemployment rate was 4.2% as of February, according to data from the Bureau of Labor Statistics. The figure was 30 basis points higher than the national average. A joint venture between the city of Denver and Denver County aims to boost economic growth downtown. The partnership plans to expand the current Downtown Development Authority, which is expected to generate $500 million to be used for revitalizing downtown Denver. The DDA highlighted that no residential properties have been developed in upper downtown since 2020. As such, capital investment will focus on increasing housing, among other initiatives.
Developers brought 3,358 units across 15 properties online in the first four months of the year. Mirroring development, completions skewed toward the upscale segment, which had some 42,000 units under construction. Investors were active as well, with nearly $1 billion in assets trading. Denver’s average price per unit settled at $289,633, well above the national average of $181,913.
Read the full Yardi Matrix Denver Multifamily Market Report: June 2024
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