Sales Market Insight
Inventory and mortgage rates are the two variables to continue to watch closely. Month’s supply is expected to continue to rise in 2025, further cooling price growth and improving affordability. As we move into April, we’re keeping a close eye on whether inventory growth keeps accelerating or tapers off to mirror the pattern of 2024. Interest rates above 6.5% remain a crucial part of the equation for buyers, forcing some sellers to be more receptive to concessions and covering closing costs.
Rental Market Insight
According to the Apartment Association of Metro Denver, the region added 19,910 multifamily units in 2024, up from 13,246 in 2023, and 10,992 in 2022, which was closer to the historical average of around 9,000 to 10,000 new units a year in the recent past. By the Q4 of 2024, absorption turned negative and caused the vacancy rate to reach nearly 10%, forcing many landlords to cut rent by as much as 20% from 2023 and increase concessions – a trend that will continue through 2025 as more inventory is delivered. This of course is all good news if you are a renter and looking for a deal on your next lease opportunity!
Downtown will Rebound in 2025
Commercial and residential real estate in downtown Denver was thriving in 2019. Today, some commercial buildings are selling for huge discounts while others have fallen into receivership or defaulted back to the Lender as landlords struggle to attract tenants. Homeowners felt pressure of rising insurance costs, leading to increasing monthly association dues for most condominiums. A general sense of safety was also temporarily lost, complicating efforts to foster a welcoming environment in the urban core. Now, with major investments and improvements including the completion of the 16th Street Mall expected by Summer 2025, the relocation of the Greyhound Bus Terminal from Union Station to Civic Center Station in August 2025, and large tech companies like Ibotta committing to office space in LoDo, downtown will begin to blossom again. Go Rockies!
As always, thank you for staying engaged with our blog and for your valuable feedback on what information is important to you. Our goal is to provide insights that help you navigate the real estate landscape and make informed decisions. We look forward to working with you this year!
