Denver Rental Market Trends and Update- November 2025

Denver Rental Market Update
Average rent across Denver has slightly increased to $2,087, but a slowdown in the rental market is now affecting all property types.

Condos are down $48 month-over-month, single family homes down $140, and vacancies have risen to 4,546 units.

Factors impacting the market include economic stress, sales market challenges, declining in-migration, and ongoing housing legislation.

It has been roughly 17 months since our last market update in April 2024. At that time, Denver’s rental market was clearly segmented: multi-family properties were facing softer rents and increasing incentives, while single family homes remained strong. Average rent across all property types was $2,077 per month, and total vacancies stood at approximately 3,400 units, a level that raised concern for landlords and investors alike.

Since then, the slowdown predicted has expanded beyond condos and apartments and is now affecting all property types. Average rents have increased slightly to $2,087. This is not a collapse, but it reflects a steady flattening trend. Condos are down roughly $48 month-over-month, single-family homes are down about $140, and overall vacancies have risen to 4,546 units, an increase of more than 1,100 since last spring. Even well located homes that used to lease quickly are now taking longer to fill, which requires owners to be proactive with pricing and marketing.

National Context
This slowdown is not unique to Denver, but mirrors broader national trends. Zillow data shows that single family rental rates are experiencing little to no growth year-over-year, with declines accelerating as the slow season approaches. Nationwide, average days on market are over 30, trending toward a five year high, while vacancy rates are also at a five year high. Rental growth has been flat or negative since mid-2023, even in traditionally strong markets like Denver. Data indicates that rents peaked in 2022 and have been steadily declining since mid-2023, with newer homes, particularly those built in the last 10 years, feeling the greatest pressure after several years of record highs.

Key Market Drivers
There are four primary factors impacting Denver’s rental market: economic turmoil, declining in-migration, sales market struggles, and a complex legal environment.

Economic Turmoil
Late payments on credit cards and auto loans have increased nationally, signaling financial stress among renters. When household budgets are tight, many delay moves or seek lower cost options. On time rental payments nationally have dropped sharply this year, approaching levels last seen in the early COVID period.

Sales Market Struggles
The for sale market remains soft, which has created an unexpected increase in rental supply. While signs of improvement exist, many owners are renting after unsuccessful sales attempts, adding to competition.

Declining In-Migration
Fewer people are moving to Colorado compared to previous years, reducing new demand for rentals. In-migration trends have been downward since 2020, and some analysts predict a possible net decline next year.

Legal Environment
Colorado has passed significant housing and landlord-tenant legislation for four consecutive years. The added compliance requirements are prompting some investors to reconsider adding more rental properties. Legislative activity remains high and is expected to continue evolving.

Multifamily Competition
Competition in the multifamily sector remains intense due to large apartment communities opening in recent years. While construction has slowed in 2025, these communities continue to offer significant rent incentives to fill units, which can draw renters away from smaller landlords.

Implications for Owners
For rental property owners in Denver, the key takeaway is that the market remains fundamentally healthy, with vacancy levels under control. However, it is more balanced than in previous years. Strategic pricing, strong property maintenance, and timely market responses are essential. Properties that are well maintained, appropriately priced, and marketed aggressively will continue to perform well, whereas owners who hold onto outdated rent expectations may experience longer vacancies.

Grace Property Management & Real Estate - serving real estate investors and residents since 1978.
At Grace Property Management, we believe that when property management is performed with integrity and transparency, both tenants and landlords benefit. Property management is not just our business - it is a relationship between us, our owner-clients, and our tenant-residents.

Grace Property Management & Real Estate
2200 E 104th Ave Suite #105 Thornton, CO 80233, United States
303-255-1990
https://www.rentgrace.com/

#GracePropertyManagement #DenverPropertyManagement #ThortonPropertyManagement #DenverRealEstate #DenverRealEstateInvestors #ColoradoPropertyManagement #DenverLandlords #rent #newproperty