Denver Rental Market Trends: April 2025
This comprehensive analysis of Denver’s rental market provides insights into current trends, pricing patterns, and neighborhood comparisons to help renters and property managers make informed decisions.
Executive Summary
Denver’s rental market continues to show moderate growth in early 2025, with average rents increasing 2.3% over the past month. Vacancy rates have decreased slightly to 3.8%, indicating a competitive market for renters. New construction remains active, particularly in the RiNo and Central Park neighborhoods, which may help ease demand pressure in coming months.
Average Rental Prices
Citywide Averages
| Apartment Type | Current Average | Monthly Change | Annual Change |
|---|---|---|---|
| Studio | $1,375 | +1.8% | +4.2% |
| 1 Bedroom | $1,650 | +2.3% | +5.1% |
| 2 Bedroom | $2,125 | +2.5% | +4.8% |
| 3+ Bedroom | $2,565 | +2.7% | +3.9% |
| Overall Average | $1,929 | +2.3% | +4.5% |
Neighborhood Comparison
The table below shows average one-bedroom apartment prices across Denver’s major neighborhoods:
| Neighborhood | Average 1BR Rent | Monthly Change | Annual Change |
|---|---|---|---|
| Downtown | $1,950 | +2.8% | +5.4% |
| LoDo | $2,100 | +3.1% | +6.2% |
| Capitol Hill | $1,650 | +1.9% | +4.3% |
| Highland | $1,850 | +2.4% | +5.0% |
| RiNo | $1,900 | +2.6% | +5.8% |
| Cherry Creek | $2,300 | +2.2% | +4.7% |
| Washington Park | $1,875 | +2.0% | +4.5% |
| Five Points | $1,725 | +2.3% | +5.2% |
| Baker | $1,700 | +1.8% | +4.0% |
| Uptown | $1,675 | +1.7% | +3.8% |
| Central Park | $1,800 | +2.1% | +4.6% |
| Berkeley | $1,725 | +1.9% | +4.2% |
| University | $1,550 | +1.5% | +3.5% |
| West Denver | $1,350 | +1.2% | +2.8% |
| Aurora (adjacent) | $1,425 | +1.4% | +3.2% |
Vacancy Rates
The current citywide vacancy rate stands at 3.8%, down 0.5% from the previous month. This decrease indicates a tightening rental market, with demand outpacing available supply in most neighborhoods.
Vacancy by Neighborhood
| Neighborhood | Vacancy Rate | Monthly Change |
|---|---|---|
| Downtown | 4.2% | -0.3% |
| LoDo | 3.9% | -0.4% |
| Capitol Hill | 3.5% | -0.6% |
| Highland | 3.7% | -0.5% |
| RiNo | 4.5% | -0.2% |
| Cherry Creek | 3.3% | -0.4% |
| Washington Park | 3.0% | -0.7% |
| Five Points | 3.8% | -0.5% |
| Baker | 3.6% | -0.4% |
| Uptown | 3.4% | -0.6% |
| Central Park | 4.8% | -0.1% |
| Berkeley | 3.2% | -0.5% |
| University | 2.8% | -0.8% |
| West Denver | 4.1% | -0.3% |
| Aurora (adjacent) | 4.6% | -0.2% |
Rental Affordability
The rental affordability index measures the percentage of average income required to pay for an average one-bedroom apartment. Currently, Denver renters spend approximately 28.5% of their income on rent, slightly above the recommended 25-30% threshold.
Income to Rent Ratio by Neighborhood
| Neighborhood | % of Income for 1BR | Affordability Rating |
|---|---|---|
| Downtown | 32.4% | Moderate |
| LoDo | 34.9% | Low |
| Capitol Hill | 27.4% | High |
| Highland | 30.7% | Moderate |
| RiNo | 31.6% | Moderate |
| Cherry Creek | 38.2% | Very Low |
| Washington Park | 31.2% | Moderate |
| Five Points | 28.7% | Moderate |
| Baker | 28.2% | Moderate |
| Uptown | 27.8% | High |
| Central Park | 29.9% | Moderate |
| Berkeley | 28.7% | Moderate |
| University | 25.8% | High |
| West Denver | 22.4% | Very High |
| Aurora (adjacent) | 23.7% | Very High |
New Development Impact
Denver continues to see significant apartment development activity, with approximately 8,500 units currently under construction and expected to be completed within the next 18 months. The table below shows the distribution of new units by neighborhood:
| Neighborhood | Units Under Construction | Expected Completion |
|---|---|---|
| Downtown | 950 | Q3 2025 - Q1 2026 |
| LoDo | 725 | Q4 2025 - Q2 2026 |
| RiNo | 1,850 | Q3 2025 - Q4 2025 |
| Central Park | 1,200 | Q2 2025 - Q4 2025 |
| Five Points | 875 | Q3 2025 - Q1 2026 |
| Highland | 650 | Q4 2025 - Q2 2026 |
| Cherry Creek | 525 | Q1 2026 - Q3 2026 |
| Other Areas | 1,725 | Various |
This new inventory is expected to help moderate rent increases in late 2025 and early 2026, particularly in neighborhoods with the highest concentration of new development.
Seasonal Trends
Denver’s rental market typically follows predictable seasonal patterns:
- Spring (March-May): Increasing activity with moderate price growth
- Summer (June-August): Peak rental season with highest prices and lowest vacancy
- Fall (September-November): Gradually decreasing activity and stabilizing prices
- Winter (December-February): Lowest activity with potential for better deals
Current data suggests we are entering the typical spring uptick in rental activity, with increased demand and rising prices expected to continue through the summer months.
Market Forecast
Based on current trends and economic indicators, we project the following for Denver’s rental market over the next 6-12 months:
- Rent Growth: Continued increases of 4-5% annually, with potential moderation in late 2025 as new inventory becomes available
- Vacancy Rates: Likely to remain below 4% through summer before potentially increasing slightly in fall/winter
- Neighborhood Trends: Strongest growth expected in RiNo, Five Points, and Highland; more moderate increases in established areas like Cherry Creek and Washington Park
- Affordability Challenges: Continued pressure on rental affordability, particularly in premium neighborhoods
Methodology
This report utilizes data from multiple sources, including:
- Proprietary rental listing database (5,000+ Denver listings)
- Colorado Apartment Association reports
- Denver Housing Authority data
- Public records of building permits and development projects
- Census Bureau housing statistics
- Local property management company surveys
Data is collected monthly and analyzed for trends, with adjustments made for seasonal variations and outliers. Neighborhood boundaries are defined according to City of Denver official designations.
About Denver Apartment Guide
Denver Apartment Guide provides comprehensive resources for apartment seekers in the Denver metro area. Our market reports are published monthly to help renters, property managers, and real estate professionals make informed decisions based on current data and trends.
For questions about this report or to request additional information, please contact our research team.