Denver 4Q23 Multifamily Market Insights Report: Class A assets leading the way in the investment market

Highlights:

• After holding steady for much of the year, operating conditions in the Denver multifamily market softened during the fourth quarter. The vacancy rate rose, and rents declined in the final three months of the year. New projects continued to come online; annual completions totaled roughly 13,500 units.
• The vacancy rate trended higher in recent months after remaining relatively stable during the first nine months of the year. Vacancy rose 40 basis points during the fourth quarter to 5.8%. The local vacancy rate rose just 20 basis points for the full year.
• Rents dipped in the closing months of 2023 after posting healthy growth in the first three quarters of the year. Apartment rents declined by 1.8% during the fourth quarter to $1,894 per month. Even after a drop at the end of the year, area rents increased by 1.6% in 2023.
• Transaction volume picked up during the second half of the year, but annual sales in 2023 still lagged levels recorded in 2022 by 47%. The median price in 2023 was $318,600 per unit, up 6% from the previous year.

Read the report, or engage with our Denver office to learn more.