Denver Q2 Multifamily Market Insights: Construction picking up in response to strong job growth
Highlights:
- The Denver multifamily market posted increased activity in the second quarter. Construction has picked up, rents are on the rise, and sales transactions gained momentum. Strength in the local labor market is fueling multifamily operating conditions.
- Vacancy has remained in a very tight range for the past five quarters. The rate ticked higher in the second quarter, rising 10 basis points to 4.8 percent. Year over year, the rate improved by 10 basis points.
- Denver recorded robust rent growth in the second quarter. Average rents rose 4.7 percent in the past three months, reaching $1,872 per month. Year over year, average rents increased by 15.5 percent.
- Transaction activity gained momentum in the second quarter with more properties changing hands than in the first three months of the year. The median sales price thus far in 2022 is $354,545 per unit, up slightly from the 2021 median price. Cap rates averaged around 3.5 percent, down from 3.8 percent in 2021.
