The Denver apartment market is currently experiencing significant shifts that reflect its rapid growth, evolving supply, and changing renter dynamics. Based in Denver, CO, this market is recalibrating after several years of intense construction and demand, creating new opportunities and considerations for renters and landlords alike. This article explores the latest trends, vacancy rates, rent fluctuations, and what renters can expect in the near future.
Current State of the Denver Apartment Market
The Denver apartment market has seen a remarkable expansion in inventory recently. In 2024 alone, nearly 20,000 new apartment units were added—amounting to a 4.8% increase in total supply that far exceeds the city’s five-year annual average of about 11,400 new units per year. This surge is largely due to developers rushing projects to meet previous affordable housing policy deadlines, resulting in a temporary oversupply.
Rising Vacancy Rates and Rent Adjustments
As a consequence of this influx, vacancy rates have climbed sharply. In the first quarter of 2025, Denver's apartment vacancy rate hit 7%, the highest in 15 years. This rate notably increased from 5.8% a year earlier and has created a renter-friendly market. Vacancy rates above 6% typically cause landlords to moderate rent increases or even lower rents to keep occupancy high.
Accordingly, average rents have softened. Metro-wide rent decreased by 1.5% year-over-year by the end of 2024, with further declines in early 2025 bringing average rents down to around $1,819 per unit—a 4.1% drop compared with the previous year’s peak. This trend is expected to continue as landlords compete to fill vacant units, making it an advantageous time for renters to secure leases.
Market Absorption and Construction Outlook
Despite higher vacancies, Denver continues to absorb new units at a solid pace. About 2,081 units were absorbed in Q1 2025, maintaining strong demand. However, the extraordinary construction surge seen in recent years appears to be tapering off, with quarterly deliveries dropping from over 5,000 units in late 2024 to fewer than 2,400 in Q1 2025.
Experts suggest this signals a transition to a more sustainable growth rate after a decade of rapid expansion. Denver’s well-diversified economy, outdoor lifestyle, and cultural offerings continue to support multifamily housing demand, though the market is no longer in a hyper-growth phase.
Implications for Renters and Landlords
The Denver apartment market currently favors renters:
For landlords, the balance will be finding the optimal rate that sustains income while retaining tenants in this competitive environment.
Submarket Snapshot: Highlands Ranch
Nearby suburbs like Highlands Ranch continue to show strong demand and slightly higher rents than Denver’s metro average. Single-family home rentals there average $3,490, reflecting a tight market with fewer available units and quicker turnover. This indicates diverse market conditions even within the greater Denver area.
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Trace And Trace West Townhomes
