Multifamily Report - Denver Metro Area - 2Q 2024

Record-Setting Quarter for Delivery Volume a Preview of the Near-Term Horizon

A number of zones brace for supply influx. Developers added more than 3,000 units across the metro in the first three months of 2024, marking the only time since at least 2000 that quarterly delivery volume exceeded this threshold. While rare, this occurrence will repeat, as another 14,000 units are slated for delivery this year. Fortunately, solid in-place demand exists for most new apartments, as from January-March of this year Class A vacancy rose just 10 basis points. Moving forward, employment-driven in-migration is expected to support an uptick in household formation. This and the more than $2,500 per month gap between average Class A rent and the mean mortgage payment on a median-priced home should stoke demand for new rentals. Still, near-term volatility will be felt. The RiNo, Golden Triangle and Tech Center neighborhoods will contend with groups of high-rise projects. Rental stocks in Aurora and Broomfield, meanwhile, will each grow by more than 2,000 units.