Denver Leads the Nation in Rent Declines, but the Trend May Not Last

Rent costs in the Denver metro area recorded the largest monthly decline in the nation in January, according to Zillow’s latest rental report. Denver was one of only 11 major metro areas where rents fell, with a 0.4% decline, leading Cincinnati and Birmingham, which saw a 0.2% decrease.

This decline runs counter to the national trend, where rents increased in 47 of the 50 largest metro areas compared to January 2024. The typical rent in the Denver region was $1,918 in January, reflecting a 0.8% year-over-year decrease.

Multifamily properties saw an even greater drop, with rents declining 0.5% in January, tying with Cincinnati for the largest decline. Additionally, Denver recorded the largest increase in rental concessions nationwide, with 67.2% of listings offering incentives—well above the national average.

Increased Inventory Continues to Drive Rent Declines

The softening rental market in Denver is largely due to a surge in new apartment supply. The Apartment Association of Metro Denver’s fourth-quarter report for 2024 noted that a record 19,910 new units entered the market last year, increasing the region’s apartment supply by 4.8%. In the fourth quarter alone, 2,228 new units became available, setting a record for a single calendar year.

This influx of new properties has driven higher vacancy rates and contributed to a $69 decrease in average monthly rent for multifamily properties compared to the previous quarter, marking a 1.5% decline year over year.

How Long Will This Trend Last?

While renters are currently benefiting from lower prices and increased incentives, experts warn that this trend may not continue in the long term.

“2025 will still deliver a lot of new units, and so there’ll be a lot of competition out there, but the spigot pretty much gets turned off in the next 18 to 24 months,” said Mark Williams, executive vice president of the Apartment Association of Metro Denver.

With fewer new units expected to come online in the near future, rents could stabilize or even rise as supply tightens. For now, renters have a unique opportunity to take advantage of lower prices and competitive leasing offers before the market shifts once again.