Key Points
Denver rents are at a four-year low with move-in concessions at record highs
A significant increase in multifamily supply is expected to hit the Denver market in 2026 to 2027
Real estate investors should prioritize renewals, practice competitive pricing, and reposition their investments
Many Denver real estate investors are asking the same question right now: why are rents flat or declining, and when will this turn around? To help answer that, it’s important to look at a few data points that show what’s actually happening in the Denver rental market right now.
According to the Apartment Association of Metro Denver, rents have dropped to a four-year low while concessions have reached record highs. Data from Yardi shows Denver near the bottom of major U.S. metros for rent growth, down about 5% year-over-year, meaning Denver is a national leader for rent reductions. A recent report in The Wall Street Journal highlighted rising concessions across Sun Belt cities, identifying Phoenix as the ‘rent concession capital of the nation’. What’s notable for Denver investors is that Denver ranked a very close second. The average move-in concession in Denver is now 10 to 12 weeks of free rent, which significantly reduces effective annual rental income. Our internal rental data is showing these same trends (or worse). With this being said, it is important to consider that property type plays a significant role in this data, as single-family homes are more insulated than multi-family.
Below we share what is happening and what Denver real estate investors should be doing to protect their investment.
New Rental Supply
The fundamental impact to shifts in the rental market is the same as it has always been - supply and demand.
Denver added 16,970 new units in 2025. Developers have 20,321 units underway as of November 2025 and another 115,000 in the planning and permitting phases. Not all of those will be built, but the pipeline is large enough to keep pressure on rents through 2026 and likely into 2027, particularly in Class A multifamily housing.
With a significant amount of new inventory and demand not keeping pace, downward pressure on rents is likely to continue.
Single-family rentals have been more insulated from these declines than large multifamily communities. That said, the aggressive concessions and quality of new construction are creating real competition for single family rental properties. Many new Class A multifamily properties are offering high-end amenities along with several months of free rent. For some renters, the opportunity to lease a brand-new unit with those incentives is compelling enough to shift away from a traditional single-family home.
2026 Outlook
Despite the challenges of the current rental market, there are several practical steps Denver real estate investors can take in 2026.
Renewal rates were flat in 2025 and we expect them to decline in 2026. Retaining quality tenants should be the highest priority for housing providers.
If a property is vacant, it must show well and be priced correctly. Fresh paint, clean flooring, and strong presentation matter. In many cases, some level of concession may be necessary to compete and attract tenants.
For investors holding condos, townhomes, duplexes, or small multi-family properties, it may be worth reviewing long term positioning. Single-family rentals historically experience lower turnover and stronger tenant stability, making them better long-term investments. If your rental property is in poor condition, older, or located in a less desirable part of town, the best decision may be to sell it and then buy a new single family rental property (builders are significant discounts on their for-sale inventory).
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.
If these are important to you, we may be a good fit to provide you, your property, and your tenant-resident with our full-service property management services.
Feel free to reach out to us for assistance.
Grace Property Management & Real Estate
Serving real estate investors and residents since 1978.
www.RentGrace.com
303-255-1990
