Denver Rents Drop as New Apartments Flood the Market, Outpacing Austin and Nashville
Denver, CO – February 1, 2025 – Renters in Denver are getting a welcome break as rental prices in the metro area decline at one of the fastest rates in the country. With an oversupply of new apartments hitting the market, landlords are slashing rents and offering lucrative incentives to attract tenants—making it an opportune time for those looking to lease in the Mile High City.
Denver’s Rental Market Sees Significant Price Drops
According to Realtor.com, rental prices for apartments with up to two bedrooms in the Denver metro area fell 5.9% in 2024. This decline outpaces other pandemic-era boomtowns like Austin (-5%) and Nashville (-4.4%), where rents also saw reductions but at a slower pace.
The decrease in rental prices is primarily due to a surge in new apartment construction, particularly in Denver’s urban core. Builders who once rushed to meet skyrocketing demand during the pandemic are now completing their projects just as population growth in the region has slowed.
Why Are Denver Rents Dropping?
During the height of the pandemic, Denver became a top destination for remote workers and transplants seeking a lower cost of living compared to coastal cities. However, as migration patterns stabilize, demand for rentals is no longer keeping up with supply.
“Everybody that wanted to move here because of remote work has moved here,” said Brian Sanchez, CEO of Denver Apartment Finders, a rental locator service.
From 2010 to 2020, the Denver metro area experienced a population boom of over 16%, growing to nearly 3 million residents. But since 2020, that growth has slowed to just 1% per year, leaving an excess of newly built apartments with fewer renters to fill them.
Landlords Offer Incentives to Fill Vacancies
In response to the oversupply, property owners and management companies are rolling out aggressive leasing incentives, including:
Up to 10 weeks of free rent
Discounted parking fees
Gift cards and move-in bonuses
These perks are becoming commonplace in Denver’s rental market, making now an ideal time for prospective renters to negotiate better lease terms.
How Denver Compares to Other Cities
While cities like Austin and Nashville also saw rent reductions, Denver’s 5.9% decline was steeper, signaling that the market may have reached a turning point. The combination of slower population growth and a surplus of new housing has given renters more leverage than they’ve had in years.
For those considering a move to Denver or looking to upgrade to a better apartment, the current market conditions present a rare opportunity to lock in lower rents and take advantage of incentives before the market rebalances.
Source : Swifteradio.com
