It's a renter's market in Denver
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Illustration: Brendan Lynch/Axios
Denver metro renters, it's your time.
The big picture: The metro area's apartment vacancy rates during the first quarter of 2025 hit 7%, the first time in 15 years, per an Apartment Association of Metro Denver (AAMD) report released Thursday.
- The vacancy rate prompted rents to dip to their lowest levels since 2022.
Why it matters: Increased vacancy rates and lower rents translate to more manageable monthly payments and more concessions for renters navigating an expensive market.
By the numbers: Average rents dipped to $1,819 in the first quarter, down $23 from the previous quarter and $56 from the same period in 2024.
- Vacancies rose to 7% from 5.8% during the same period in 2024.
The intrigue: The metro area's rental market added 20,000 new apartment units last year, a roughly 5% increase to its total inventory, Cary Bruteig of Apartment Insights said during a Thursday press call.
What they're saying: "It's a renter's market now, [and] probably will be for a few more years," Bruteig said
- With lower rents, now is the best time to sign a 12-month lease, AAMD executive vice president Mark Williams said. Nearly 31,000 are currently available units in metro Denver.
Threat level: A high vacancy rate — 5% is often the baseline sought by apartment communities — historically can signal the start of a recession.
- Job growth slows and fewer people sign rental agreements, Bruteig said; but so far, "we haven't seen the economic recession that's usually matched with [high vacancy rates]."
Between the lines: Renters can expect added concessions, giving them more to negotiate, Williams said, with "aggressive" perks like free rent offered by apartment complexes as they race to fill units.
What's next: Bruteig expects rents will continue to fall this year.