Denver metro apartment vacancy rates fall as new deliveries slow

Metro Denver Apartment Market Update

In the second quarter of the year, Metro Denver’s apartment vacancy rates decreased while rents saw a slight increase. Despite this, the market conditions continue to favor renters, as reported by the Apartment Association of Metro Denver in their Vacancy & Rent Report.

The average rent in the region rose from $1,819 to $1,832 in the second quarter, although it remains 3.7% lower compared to the previous year and below the rates from 2023. Nationally, rental costs increased by 3.8% over the same period, according to the U.S. Bureau of Labor Statistics.

Researcher Cary Bruteig noted that the slower rent increase is due to elevated vacancy rates, which dropped from 7% to 6.4% in the second quarter. Vacancies were highest in Arapahoe and Denver counties, while Jefferson and Boulder counties had the lowest rates.

With a slowdown in new apartment construction, the demand for existing units remains strong. Over the past year, 11,184 apartments were occupied, with 4,573 of those in the second quarter.

Looking ahead, Bruteig predicts an oversupply situation in the market until 2026, assuming consistent absorption rates. Factors like migration trends and job growth could impact future demand and extend the renter’s market.

Local regulations, including Denver’s inclusionary housing ordinance, along with rising interest rates and construction costs, have contributed to a decrease in multifamily starts, according to Mark Williams, the association’s executive vice president.

Landlords are still offering concessions to attract tenants, averaging about 4.9% of gross rents, equivalent to around $90 per month on average.

The data in the report was collected from 248,812 apartment homes.

Originally Published: July 24, 2025 at 3:36 PM MDT