At A Glance

 

Exceeding Expectations

Record-setting rents and absorption for all three markets up and down the Front Range exemplify the continued demand and need for apartments in Colorado. Despite the slight decrease in transaction volume year-over-year, the average price per unit increased by approximately 28 percent, as several luxury apartment buildings sold in the CBD submarket. The significant number of units in the construction pipeline has not negatively impacted the overall market. However, with the ongoing shortage of construction labor and increasing material costs, the Front Range will likely experience delays in the completion of some new units, which could put upward pressure on rents for existing inventory.

     2018_Q3_Multifamily_Colorado_Report_Colliers 
 

Highlighted Trends

  • Absorption reached 1,296 units during the third quarter - up 758 units from Q3 2017.
  • The overall average rental rate in Metro Denver during the third quarter was $1,530 per unit, an increase of 3.9 percent year-over-year.
  • A total of 21,038 units are under construction in Metro Denver, with more than 5,800 units located in the CBD.
  • Metro Denver vacancy rates decreased by 10 basis points from the previous year to the current rate of 4.6%.
   

 

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