Denver Multifamily Market Report
High Incomes Allow for Metrowide Improvements Amid Demand Shift Back into Urban Core
Growing tech scene a boon for Class A demand. Denver’s tech sector is swelling, propelling the market’s median household income above any metros outside of the Bay Area and the nation’s capital. Additionally, the metro’s median age lands 1.6 years below the national average, a positive for rental demand as the 20-34 age cohort is more likely to rent. A young populace with high incomes is translating to low availability of luxury apartments, allowing for strong rent growth. Meanwhile, rates for units toward the lower end of the class spectrum are also on an upward trajectory. The typical gap between Class A and Class C effective rents in Denver is just under $600 per month, and will likely hold in that range. As such, exceptional Class A rent growth will continue to pull up other segments’ rates alongside.