Denver Multifamily Market Report
2024 Investment Forecast
Southern Suburbs Gain Renter Demand;
Stabilized Stock Draws Activity Westward
Long-term growth trends aid Denver’s apartment outlook. Despite a loss in the overall number of jobs in Denver last year, a notable count of roles continued to be added in the professional and technical services sector. This momentum will carry forward amid an overall employment gain in 2024, supporting household formation. In-migration is also increasing following challenges caused by the pandemic, adding to Denver’s housing demand. Still, new residents are faced with homeownership affordability hurdles, aiding apartment absorption. This dynamic, however, is met by a historical delivery slate, resulting in fundamentals softening in the near-term. Some areas are, nevertheless, well equipped to welcome this new supply. The Parker-Castle Rock submarket defied the metro’s overall trend of Class A vacancy expansion last year, helping hold its rate in line with 2019’s measure. Renter popularity here is partially bolstered by the area’s proximity to the Denver Tech Center (DTC), accommodating nearby commuting professionals, while the local luxury-tier average effective rent stands more than 10 percent below the mean in the DTC.