Apartments in Denver continue to benefit from steady inmigration and a red-hot housing market, and this strong demand has continued into 2022. Rents have accelerated in the last year and are now up by about 13.1% year-over-year.
At the onset of the pandemic, renters began exiting the urban core in search of larger, more affordable units in the suburbs. Urban rents in Denver were severely impacted by this shift in renter preference in 2020, but demand for urban units is now on the rise as renters return to the office and enjoy reopened amenities. The rise in demand for urban units is a promising sign given that the widespread economic disruption caused by the pandemic had renters chasing affordability through 2020. However, the omicron variant is posing additional
challenges to the city’s recovery with many businesses further delaying back-to-office initiatives, which could dampen apartment demand in Denver’s urban core in the near term.
Landlords will need to brace for a wave of new supply that will pour onto the market in the next several quarters. This is especially prevalent in Downtown, which holds the number two spot among U.S. submarkets in terms of construction activity with over 7,000 units currently underway.
Denver has emerged as one of the strongest apartment markets in the country, and real estate investment trusts and investment firms are actively searching for assets to expand their Denver presence.