Rental Sector Slows Down
The slowdown in Denver’s multifamily market intensified at the start of 2024’s fourth quarter, impacted by a surge in new supply, as per the latest Denver multifamily market report. Average advertised asking rents fell 0.8% on a trailing three-month basis through November, to $1,894, lagging the U.S. rate, which slid 0.2%, to $1,744. Still, the occupancy rate in stabilized properties endured, down just 10 basis points year-over-year through October, to 94.8%, according to the national multifamily report.
Denver’s diverse economy slowed progressively throughout the year, posting a mere 0.2% employment growth, or 12,600 jobs, year-over-year through September, well behind the 1.4% U.S. average. Gains were highest in the government sector (12,200 jobs) and education and health services (7,500 jobs). Meanwhile, four sectors recorded a combined loss of 12,000 jobs, with the largest reductions recorded in trade, transportation and utilities (5,600 jobs) and information (2,700 jobs). The unemployment rate rose to 4.5% in October, underperforming the U.S. and the state rates (both at 4.1%). Notable activity in Denver includes the approval of Ballot Measure 6A, which authorizes the use of $570 million of debt for downtown revitalization.
Developers delivered 17,020 units through November—already a new decade high—and had 33,034 units underway. Sales activity picked up, totaling $3.4 billion through November, but the per-unit price decreased 9.9% year-to-date, to $285,651 in November.
Read the full Yardi Matrix Denver Multifamily Market Report: January 2025
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