DENVER RENTAL MARKET UPDATE - DECEMBER 2025
Key Highlights
- Average rent in Denver is now $2,087, but the rental market is slowing for all property types.
- Condos: Down $48 month-over-month.
- Single-family homes: Down $140 month-over-month.
- Vacancies: Up to 4,546 units, an increase of over 1,100 since last spring.
- Market drivers: Economic pressures, a tough sales market, slower in-migration, and ongoing changes in housing laws.
- Well-priced, well-maintained properties are still finding tenants.
What’s Happening in Denver’s Rental Market?
It’s been about a year since my last market update, and a lot has changed! Back in April 2024, Denver’s rental market was split: apartments and condos were already showing signs of slowing down, while single-family homes were still going strong. At that point, average rent was $2,077 and vacancies hovered around 3,400 units—a number that made many landlords uneasy.
Fast forward to now, and the slowdown has spread to all property types. While average rents are up just a bit to $2,087, the trend is flattening. Condos have dropped by about $48 month-over-month, single-family homes by $140, and vacancies have jumped to 4,546 units. Even homes in great locations are taking longer to lease, so pricing and marketing strategies need to be sharper than ever.
Denver Isn’t Alone: The National Picture 🏡
This isn’t just a Denver thing—rental markets are cooling off all over the country. According to Zillow, single-family rental rates are barely growing, and in some cases, actually dropping. As we head into the slower rental season, national vacancy rates and days on market are both at five-year highs. Rents peaked in 2022, but since mid-2023, the trend has been either flat or negative. Newer homes, especially those built in the last decade, are feeling the pinch after several years of high demand.
What’s Driving the Change?
Let’s break down the main factors shaping Denver’s rental market:
- Economic Uncertainty: More renters are struggling with late payments on credit cards and auto loans. When money is tight, people are less likely to move or might look for cheaper options. On-time rent payments have dropped sharply this year—almost to early-pandemic levels.
- Sales Market Challenges: The for-sale market is still soft, pushing some owners to rent out their homes after unsuccessful sales attempts. This means more rental options—and more competition.
- Declining In-Migration: Fewer people are moving to Colorado, so there’s less new demand for rentals. Since 2020, in-migration has been slowing, and some experts think we might even see a net decline soon.
- Evolving Legal Landscape: Colorado has passed significant housing laws for four years in a row. The increased compliance is making some investors think twice about adding more rentals. Expect more legislative changes on the horizon.
- Multifamily Competition: Large apartment complexes that opened recently are still offering big incentives to attract tenants, which makes it tough for smaller landlords to compete—especially since construction has slowed but existing projects need to fill up.
What Does This Mean for Rental Owners? 🏠
The good news: Denver’s rental market is still fundamentally healthy. Vacancies are higher than last year, but not out of control. The market is just more balanced now. The key is to stay flexible—adjust your pricing, keep your property in great shape, and be proactive with marketing. Well-maintained, well-priced properties will still lease well, but holding out for yesterday’s rents could mean longer vacancies.
At My Haven, I’m committed to guiding property owners through these changes. Whether you’re a current client or just looking for advice, my priority is protecting your investments, keeping you compliant with Colorado’s evolving laws, and helping you navigate the market with confidence.
If you value transparency, integrity, and a hands-on approach to property management, My Haven is here to help you, your property, and your tenants thrive.
