As seen in CoStar
Denver multifamily asking rents are slowly rising, though the latest increase denotes a softer seasonal start than in years past.
Asking rents increased 0.1% in February, according to CoStar data. That nearly matches the 0.2% gain recorded in January and marks the second consecutive month of positive gains after seven months of decline from June through December 2025.
The average asking rent rose in February to $1,784 per month, up from $1,778 in the fourth quarter of 2025. However, the percentage increase trails the market’s typical five-year February average of about 0.5%, indicating a softer seasonal start than normal.
While the multifamily market has notched recent gains, annual rent growth remains firmly negative, with Denver asking rents declining 3.7% year over year.
Rent growth has been under pressure for the past two years, largely due to a glut of new units. A record 18,000 apartments were completed in 2024, followed by another 12,200 units in 2025.
The supply wave has caused the vacancy rate to increase by 3 percentage points since the beginning of 2024 to 12.2% in February. That greatly exceeds the previous record of 9.8% set in 2002.
As a result, the Mile High City has posted some of the steepest rent declines among major U.S. markets in the past year, according to CoStar. Austin, Texas, was the only big market to outpace Denver’s annual rent losses, at negative 4.8%.
The surplus of units has forced operators to offer concessions to entice tenants. Over 60% of properties contacted by CoStar’s research division reported offering free rent in February. That level has held consistently since last fall and represents the highest concession usage on record.
Property managers anticipate that concessions will be necessary throughout 2026 to compete for renters.
