Denver, CO

Market Update

The Denver market continues to show robust demographic trends, with a population of approximately 3.05 million as of the fourth quarter of 2026, reflecting a year-over-year growth rate of 1.51%. This growth is supported by a net migration of about 56,292 individuals, contributing to a renter share of 36.1%. The median household income stands at $108,046, while the employment level is reported at 1,724,238, with an unemployment rate of 4.2%. These factors collectively indicate a strong demand for housing in the area.

In terms of multifamily fundamentals, the HUD Fair Market Rent for a two-bedroom unit is set at $1,771, which is lower than the current asking rent of $2,140 for similar units. Year-over-year multifamily rent growth has declined by 0.9%, with the median gross rent remaining stable at $1,943. This stagnation in rent growth suggests potential affordability challenges for renters, as the gap between market rents and subsidy benchmarks widens, impacting overall momentum in the multifamily sector.

Capital markets in Denver reflect a multifamily cap rate of 6.18%, which is approximately 86 basis points tighter than the national median of 7.04%. Over the trailing 24 months, there have been 227 transactions with a total dollar volume of about $602.8 million, resulting in a median price per unit of $260,000, which is about 30% higher than the national benchmark. This data indicates a relatively strong investment environment, although the recent decline in rent growth may warrant cautious underwriting moving forward. According to CBRE Research, the overall economic outlook remains stable, which could influence future market dynamics.