Denver 1Q23 Multifamily Market Insights: Fundamentals improve, but sales activity remains limited
Highlights:
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![Denver-thumb-1Q2023](/sites/default/files/styles/ckeditor_embed/public/wp-content/uploads/2023/05/Denver-thumb-1Q2023.jpg.webp?itok=GdpJ5Qh5)
- Multifamily property performance metrics strengthened during the first quarter. The year ahead will be an active one for new development with more than 43,700 units currently under construction.
- Fueled by healthy absorption levels, area vacancy improved slightly in recent months — dipping 10 basis points during the first quarter to 5.5%. Year over year, the rate increased by 80 basis points.
- Asking rents inched higher to start the year, rising 0.4% in the first quarter to $1,872 per month. Despite some quarterly volatility, rents have advanced 4.7% during the past 12 months.
- Multifamily transaction activity continued to taper off, as sales volume in the first quarter dropped more than 25% from the previous period. The median sales price through the first three months of 2023 was $323,100 per unit, up 8% from the median price last year.
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