As seen in CoStar
Landlords still offering generous concessions to drive renter demand
Denver apartment vacancies remain near record highs midway through 2025, and landlords are focused on securing renters by offering generous concessions and curbing rent growth.
Apartment rents fell by 0.2% in June from the previous month, according to CoStar data. However, the most recent pullback in rent growth comes on the heels of three consecutive months of gains, spanning from March through May.
The earlier uptick was the result of a strong spring leasing season. Net absorption, or the net change in occupancy, amounted to roughly 3,600 units in the second quarter, slightly outpacing the 3,500 units that were added to the market. This is the first quarter in three years that demand has outpaced new supply.
Overall, Denver apartment rents are up by 1.3% since the start of the year.
Rents are still underperforming relative to similar timeframes in past years. Through the first half of the year, rents were up 2.1% in 2024, 3% in 2023 and 5.3% in 2022.
Concession usage remains widespread across the market. About 55% of properties in the Denver market were offering some form of incentive, such as one month’s free rent, in June. This is the highest rate of concession usage on record.
Industry professionals noted that renters are chasing concessions, leading to high tenant turnover. Renters can expect up to 10 weeks of free rent on a one-year lease in new apartment complexes. Concessions have also become increasingly common in well-leased, or stabilized, apartment buildings, as property managers focus on shoring up renewals.
Until concession usage abates, landlords will likely continue to face difficulty in pushing rates.
