Denver Multifamily Figures Q4 2023

January 25, 2024 10 Minute Read

Metro Office Figures

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      The overall occupancy rate decreased 30 basis points to 94.0% in Q4 2023. The historical Q4 occupancy from 2000-2019 has averaged 93.9%.

      The average effective rent decreased to $1,902 per unit or $2.18 per square foot (sq. ft.), down approximately $34 per unit quarter-over-quarter but up $15 per unit year-over-year.

      Development activity appears to have peaked with a high volume of deliveries and few new starts. At the end of Q4 2023, there were 33,410 units under construction.

      5,198 units delivered this quarter, pushing the 2023 total to 14,071 units. Q4 2023 experienced the most deliveries ever in a single quarter. Deliveries are expected to remain elevated through 2024 as many developments are nearing completion.

      Net absorption was positive 3,666 units in Q4 2023, bringing the year-end total to 11,510 units. Demand remained strong as metro Denver recorded the seventh highest Q4 2023 net absorption and the ninth highest annual net absorption across all markets in the U.S.

      Q4 2023 transaction volume totaled $978.5 million, a decrease of 6.8% quarter-over-quarter but a significant increase of 26.7% year-over-year. 2023 transaction volume totaled $3.1 billion; a 45.3% decrease compared to 2022.