Property Market Insights
Metro Denver Apartment Market Sees Slight Improvement in Vacancy Rates
In a recent report published by the Vacancy & Rent Report from the Apartment Association of Metro Denver, it was revealed that the apartment vacancy rates in Metro Denver decreased in the second quarter of 2025.
The vacancy rate stood at around 6.4% in mid-2025, marking a slight decline (0.6%) from the first quarter. This represents the largest drop in vacancy since 2021. The occupancy rate was about 93.7% as of March 2025, lower than the national average of 94.4%, influenced by a high volume of new supply delivered in 2024.
Regarding rent trends, Denver has seen year-over-year rent declines through early 2025. Average asking rents slid slightly (about 0.1%) through April 2025, reflecting a softer market with elevated vacancies and rental concessions averaging around 4.9% of gross rent. The rate of rent increases for renewal leases also slowed, dropping to 3.4% in Q2 2025 from 4.1% in Q2 2024, illustrating a trend of renters more frequently choosing to renew rather than move.
The softening in vacancy and rents comes after 2024's significant new supply delivery, which is now tapering off as construction decreases. This may eventually stabilize the market. The report indicates that conditions remain favorable to renters in the second quarter, although fewer new units coming online might improve balance in coming quarters.
It's important to note that the exact date of the second quarter in question is not specified in the report. Additionally, the report does not provide information about the number of available apartments in the second quarter or the change in vacancy rates from the previous quarter to the second quarter.
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In summary, the Metro Denver apartment market has seen a slight improvement in vacancy rates, with rents also experiencing slight declines over the past year. Despite these improvements, the market still largely favors renters due to elevated vacancies and slower rent growth.
- The decline in Metro Denver's apartment vacancy rate, from the first quarter to the second quarter of 2025, has been attributed to the softening of the market, following the significant new supply delivered in 2024.
- As a result of the tapering off of new supply construction and the slowing trend of rent increases, the report suggests that conditions might improve for the real estate investing sector in the coming quarters.
- Personal finance experts may see this improvement in the Metro Denver apartment market as an opportunity to invest in the real estate sector, considering the lower vacancy rates and rental concessions.
- To stay informed about future policy changes and market trends related to housing and real estate finance, investors and homeowners in Colorado can subscribe to alerts from trusted news providers to receive regular updates on the latest developments in the field.
