Denver Multifamily Demand Surges by 25% as Vacancy Spikes
Demand is improving, all while vacancy is ticking up in Denver's multifamily sector. In the first quarter, net absorption in the market was 2,776 units, up 25.4 percent year-over-year, according to a report from CBRE.
The Downtown/Highlands/Lincoln Park submarket led the demand in the quarter, thanks to its 999 units absorbed, followed closely by Northeast Denver's 976 units.
The strong performance came as deliveries dropped by 43.5 percent to 1,346 units.
Yet, other fundamentals weakened for Denver during the first quarter. Most notably, investment activity slowed considerably to $289 million compared with the $893 million posted during the first quarter of 2025.
"The average price per unit fell 18.7% quarter-over-quarter to $224,000, a decrease of 19.9% year-over-year," CBRE said in its report.
The largest trade involved 336-unit Notch66 property in Longmont, which was bought for $103 million. Cracking the top three included Momentum at First Creek and The Parker, which sold for $56 million and $32.75 million, respectively. Some other notable deals involved Wonderland Creek Townhomes and 1100 Girard, selling for $23.25 million and $11.50 million, respectively.
Meanwhile, occupancy tells more of a mixed story. While the rate plunged by 110 basis points year-over-year to 93.2 percent, this marked an increase of 40 basis points from the previous three months. This tells us that there might be some momentum for occupancy.
And average rents plunged by 6.4 percent to $1,850 per month.
Source: GlobeSt/ALM