— By Jason Koch and Adam Riddle of MMG Real Estate Advisors —
espite recent challenges, the Denver multifamily market is showing clear signs of a comeback. With new supply beginning to taper off, demand accelerating, and investor confidence returning, 2025 is shaping up to be a year of renewed opportunity for multifamily owners and investors.
Momentum Is Building Behind the Numbers
After a year of downward pressure, Denver’s multifamily market is beginning to turn the corner. First-quarter 2025 recorded net absorption of 2,544 units, a 170 percent jump from the prior quarter indicating a surge of renter demand. Over the past 12 months, absorption reached 9,200 units, the highest total since 2021.
MMG Managing Director Jason Koch notes, “Demand is back. Lease-ups are moving more quickly, especially for quality, well-located product. It’s clear that renters still want to be in Denver.”
While average rent is down 3.4 percent year-over-year, the first quarterly uptick in nearly a year suggests the bottom may already be behind us. At $1,813, Denver remains one of the strongest-performing rental markets in the Mountain West, particularly in suburban pockets where new supply is limited.
High-Quality Product Leading the Charge
Much of the recent absorption has concentrated in mid- and upper-tier assets. Well-amenitized Class A communities, especially those in growth corridors like East Denver and the Central Business District, are seeing strong leasing velocity.
Lower-tier product has experienced more volatility, but even there, the pace of negative absorption has slowed. Stabilization is underway, and with new deliveries set to decelerate, landlords across asset classes are better positioned for consistent occupancy.
Construction Slowdown Creates Breathing Room
Perhaps the biggest shift is on the supply side. The development pipeline has shrunk significantly, with active construction down more than 50 percent from its 2023 peak. Roughly 15,300 units remain under construction today, manageable by historical standards.
“After years of aggressive development, the market is getting a much-needed reset,” says MMG Managing Director Adam Riddle. “Rising costs and shifting policies have slowed the pipeline, and that’s great news for existing owners. It gives the market a chance to catch up.”
While the first quarter did see a modest rebound in starts driven in part by more favorable borrowing conditions, developers remain cautious, ensuring that future supply will be more in line with demand.
Investors Are Back, and They’re Betting on the Future
Capital is flowing back into Denver. Multifamily transaction volume rose 49 percent year-over-year in 2024, hitting $3.1 billion. The number of deals remained consistent, suggesting that investors are targeting larger, higher-quality assets.
“Smart capital is looking past short-term headlines,” says Riddle. “Denver’s fundamentals—
talent migration, diversified job growth, and renter demand—are still among the best in the country.”
Pricing has remained resilient, with the average price per unit at $310,000, only slightly below year-ago levels. For buyers seeking long-term value, Denver presents a compelling case.
Signs of Stabilization — and Opportunity Ahead
Occupancy currently sits at 91.9 percent, soft by historical standards but expected to improve steadily as absorption outpaces new deliveries. Suburban markets are already seeing stronger performance, and downtown continues to show resilience despite ongoing development.
The tide is turning. As renters re-enter the market, developers pull back, and investors reposition, Denver’s multifamily sector is entering a period of renewed opportunity.
The Bottom Line
Denver’s multifamily market is stabilizing and the foundation for growth is already in place. Demand is returning, supply is cooling, and capital is flowing back in. For investors and owners, now is the time to position for the next upcycle.
As Koch puts it, “This is where smart operators thrive. Denver has staying power, and those who lean in now will be rewarded as the market continues to rebound.”
— By Jason Koch and Adam Riddle, managing director of MMG Real Estate Advisors. This article was originally published in the June 2025 issue of Western Real Estate Business.