As seen in CoStar
Annual average asking rents fell 3.3% last year amid increased competition for tenants
The average asking rent for a Denver apartment fell 3.3% in 2025, marking the largest decline since the Great Recession as landlords continue to drop prices amid increased competition for renters.
Denver posted some of the steepest declines among major U.S. markets in the past year, according to CoStar data. Austin, Texas, was the only big market to outpace Denver’s 2025 rent losses, at negative 4.9% for the year.
Multifamily rent growth has been under pressure in the past two years due to an oversupply of units. A record 18,100 units were completed in 2024, followed by another 12,200 units in 2025, according to CoStar data.
The supply wave caused the vacancy rate to increase by nearly three percentage points since the beginning of 2024 to 12% by year-end 2025. This significantly exceeds the previous record of 9.8% set in 2002.
While demand has remained elevated over the past two years, the record new supply hitting the market was behind the pullback in rent growth.
Landlords are hopeful that 2026 will mark a return to historical norms. Roughly 4,400 units are scheduled to open in 2026, marking the lowest level of new supply since 2013.
Fewer completions are setting the stage for a more supply-constrained market, which should support stronger rent gains and allow landlords to pare back concessions.
