Denver- Q4 2022 Multifamily Figures

Denver’s multi-family market has seen some significant changes in the fourth quarter of 2022. According to recent reports, the overall occupancy rate decreased by 80 basis points to 94.5%. This marks the first time in seven quarters that the occupancy rate has dipped below the 95.0% mark.

In addition to a decrease in occupancy rates, the average rental rate has also decreased. The asking rental rate now stands at $1,874 per unit, or $2.15 per square foot, which is down approximately $36 per unit quarter-over-quarter. Despite this decrease, the average rental rate is still up by $96 per unit year-over-year.

Despite these decreases, development activity in Denver continues to surge. As of the end of Q4 2022, there were 43,700 units under construction spread across 188 properties. This indicates a strong level of interest in Denver’s real estate market and suggests that the market is still attractive to developers.

During the fourth quarter, 1,848 units were delivered, bringing the year-end total to 12,573 units. This is the second-highest delivery count in the past 21 years, with only 2018 delivering more units. However, net absorption for Q4 2022 was negative, resulting in a year-to-date net absorption of 6,457 units. This marks the lowest quarterly absorption since Q4 2011 and the lowest year-end total since 2016.

Finally, annual transaction volume totaled $5.6 billion in 2022, which is a decrease of 46.1% year-over-year. Over the last five years, transaction volume has averaged $5.7 billion annually. While this decrease in transaction volume is significant, it is important to note that the Denver real estate market remains strong overall.

Active Portfolio

  • Potomac Tudor

    Type: Single Family Detached

    Location: Highland Park, Texas

    Scope: Single Family Mid-Term Rental

  • Overlook Lake House

    Type: Single Family Detached

    Location: Possum Kingdom Lake, Texas

    Scope: Single Family Rental

  • Collection at Overlook

    Type: Multifamily

    Location: San Antonio, Texas

    Scope: 411 Units

  • Indian Springs

    Type: Residential Land Investments

    Location: Crosby, Texas

    Scope: 138 acres 575 Single Family Lots