As we move into the latter half of 2024, Denver’s multifamily rental market is experiencing a noticeable shift. For the second consecutive month, apartment rents have dipped, with a 0.1% decrease in July. This decline is largely due to an influx of new construction that has outpaced demand, especially in high-construction areas like Downtown and East Denver.
Despite a strong leasing season earlier this year, the sheer volume of new units entering the market has made it challenging for property owners to maintain rent growth. The average rent for a one-bedroom apartment in Denver now sits at $1,872 per month, reflecting a modest annual increase of just 0.5%. This puts Denver behind many other major U.S. markets, where the average rent growth is higher.
In response to this slowdown, many property managers are offering concessions to attract tenants. Nearly 38% of properties in Denver provided incentives, such as a free month's rent, in July—up significantly from 17% the previous year. However, the long-term outlook suggests improvement, with rent growth expected to exceed 4% by the end of 2025 as the construction pipeline begins to thin out.
At Corken + Company, we’re closely monitoring these trends to better serve our clients. Whether you’re considering renting, investing, or purchasing multifamily properties, our team is here to provide the insights and support you need to make informed decisions in this evolving market.
The current dip in Denver’s multifamily rents presents both challenges and opportunities. With the right guidance, you can navigate these changes and find the best value for your investment. Contact Corken + Company today to discuss how we can help you make the most of the current market conditions.
