2023 Denver End of Year Multifamily Market Report

Denver Overview

Over the past decade, Denver’s population has grown by 11.7%, outpacing the national benchmark of 5.6%. Denver’s economic strength is attributed to its highly educated workforce, a globally connected airport, and a low-tax environment. The region is home to 10 Fortune 500 Companies, including notable firms like Arrow Electronics, DISH Network, and DaVita. The most recent data shows an addition of 7,200 jobs in the past year, representing a 0.4% increase in employment. Demand for Denver apartments has returned in the past two quarters. These dynamics have also led to a rise in cap rates from 4% to 4.8% in Q4 2023, prompting caution among potential investors in the Denver multifamily market.

Denver Statistics

Population Growth

• 2022 – 2,897,000
• 2023 – 2,931,000
• % Increase – 1.17%

Job Statistics

• 7,200 jobs were added in the past 12 months, a 0.4% increase in employment.
• Unemployment continues to trend at 3.4%, below the national average.
• According to Metro Denver Economic Development Corporation, the region has the fifth highest employment concentration in the nation and was the fastest growing between 2016-2021, rising 49.2%.
• Denver also saw the greatest number of job losses over the past year as tech companies have started to scale back operations in the current interest environment.
• Overall – Strong market fundamentals and promising outlook for infrastructural investment from the state level to ensure future economic growth and job opportunities.

New Employers Moving to Denver | 10 Fortune 500 Companies

• (109) Arrow Electronics
• (249) Dish Network
• (269) Ball
• (276) DCP Midstream
• (329) Ovintiv
• (340) Liberty Media
• (342) Quarate Retail
• (348) Newmont
• (349) VF
• (357) DaVita

Multifamily Statistics

YOY Transaction Volume:

• 2023 Volume – $2,955,665,291
• 2022 Volume – $5,951,634,148
• Change – 50.34% Decrease

YOY Transaction Velocity: 

• 2023 Transactions – 174 Properties
• 2022 Transactions – 346 Properties
• Change – 49.71% Decrease

Avg Unit Price: 

• 2023 – $233,583
• 2022 – $245,004
• Change in $/Unit – 4.66% Decrease

Avg Cap Rate: 

• 2022 – 4.99%
• 2023 – 5.67%
• Change in Actual Cap Rate at Sale equaled .68%

Class Breakdown 2023: 

• A = 14 Properties
• B = 44 Properties
• C = 116 Properties

Top Transacting Submarkets: 

• Capitol Hill
• Congress Park
• City Park
• Speer/Baker
• Highlands

Largest Notable Transactions: 

• Seasons of Cherry Creek – 3498 E Ellsworth Ave – 587 Units – $225,000,000
• Modera Park – 3299 Brighton Blvd – 417 Units – $182,000,000
• Zia Sunnyside – 4055 Inca St – 434 Units – $161,000,000
• Vue West – 4811 S Niagara St – 310 Units – $123,500,000
• Griffis Platform Union Station – 1650 Wewatta St – 287 Units – $125,500,000

To read more on Denver multifamily trends and more, download the report today.