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Market Report

Denver Multifamily Market Report

2025 Investment Forecast

Moderating Construction Bolsters
Market as Denver Tailwinds Emerge

Pullback in development opens the door for improved fundamentals. After setting a local record for completed units in 2024, developers will deliver substantially fewer units in Denver this year. Elevated financing and construction costs are a key factor, but slackening rent growth and elevated vacancy rates also play a role. As a result, suburban areas like North Aurora and Northeast Denver near Montbello will see completions decline by more than 80 percent compared with last year, with similar drops in Thornton and Highlands Ranch. In contrast, deliveries will remain historically elevated in neighborhoods near Downtown, such as River North and Capitol Hill. However, slowing construction starts — partly driven by the Expanding Housing Affordability Ordinance of 2022, which mandates affordable units in all new projects within the city of Denver — signal easing future supply infusions. In the meantime, demand for urban living from both in-place and new residents should aid leasing. Last year’s record net in-migration is expected to sustained household formation in 2025. Renewed hiring in the high-paying tech sector will also support luxury rental demand, delivering modest vacancy compression and rent growth metrowide.
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