Report | Adaptive Spaces, Creating Resilience, Evolving Workforces, Future Cities

Denver Multifamily Figures Q4 2022

February 2, 2023

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  • The overall occupancy rate decreased 80 basis points to 94.5% in Q4 2022. This marks the first quarter within the past seven where occupancy has dipped below 95.0%.
  • The average asking rental rate decreased to $1,874 per unit or $2.15 per square foot (sq. ft.), down approximately $36 per unit quarter-over-quarter but up $96 per unit year-over-year.
  • Development activity continues to surge. At the end of Q4 2022, there were 43,700 units under construction spread across 188 properties.
  • 1,848 units were delivered this quarter, bringing the year-end total to 12,573 units. In the past 21 years, only 2018 saw more units delivered.
  • Net absorption for Q4 2022 was negative 252 units, resulting in year-to-date net absorption of 6,457 units. This marks the lowest quarterly absorption since Q4 2011 and the lowest year-end total since 2016.
  • Annual transaction volume totaled $5.6 billion in 2022, a decrease of 46.1% year-over-year. Over the last five years, transaction volume has averaged $5.7 billion annually.