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Monthly multifamily market intelligence

The Pierson Report

Monthly multifamily market intelligence for local, state, national, and global context. Published by NVest Analytics. Every figure is sourced and dated.
September 2026
Denver MSA. Multifamily
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The Month in Three Parts

How We Got Here

  • Denver's 2024 delivery record of 18,558 units drove rents down 6.2% year over year by Q3 2025, the trough for the cycle [150].
  • Nationally, construction fell to 475,000 units, 3.5% of inventory and the lowest since 2013 [27][28].
  • Agency 5-year quotes ran 5.14 to 5.29% in March [40] before the 10-year Treasury climbed from 4.19% on Jan 2 to 4.78% on Sep 4 [1].
  • The Fed committee held rates at 3.50 to 3.75% on Jul 29, but three members voted to raise them [17][18].
  • Denver ranked tenth nationally in 2025 transactions: $3.1 billion across 60 properties and 12,368 units [121].

Where We Are Now

  • The turn is sharp: vacancy dropped from 6.84% to 5.74% in Q2, the lowest in more than a year [150].
  • Q2 absorption of 5,902 units, up 58% year over year, was nearly three times the 2,020 delivered [150].
  • Rents are still negative, -4.7% year over year (Matthews) or -3.6% (Yardi), but improving for three straight quarters [150][180].
  • Inflation is still above target: CPI 3.4% in July, PCE 3.7% in July [36][216]. SOFR is 3.66% [35].
  • Pricing: cap rates average about 5.6% [181], negative leverage of about 47 basis points against 6.07% agency debt [40].
  • Supply is collapsing: 15,493 units under construction, the lowest in at least five years; trailing completions down 43% to 9,201 [150].

Where We're Headed

  • Rates: futures markets price about a 58% chance of a quarter-point increase on Sep 16, after peaking near 66% following the Jackson Hole speech [217]. If it lands, agency 5-year fixed rates extrapolate to roughly 6.2 to 6.3% [1][40].
  • Supply: with absorption near three times deliveries and the pipeline at a five-year low, Denver's rent decline should end by early 2027 on the current pace [150][182].
  • Colorado job growth is forecast at 0.6% in 2026 (about 17,500 jobs) after 0.4% in 2025 [183]; metro population grew 1.1% to about 3.0 million [184].
  • Policy: 2026 Colorado landlord laws cap security deposits at one month and create a receivership mechanism for multifamily; long-time owners cite the rules as a reason to sell [185][186].
  • Net: Denver is the clearest inflection in the group. Fundamentals turned in Q2; pricing has not yet. Deals like Fox Hill at $209K per unit are being struck before rents recover [186].

What It Means for Denver

  1. The rate direction has flipped. Three Fed votes to raise rates and a 10-year Treasury at 4.78% mean the "wait for cuts" plan is over for 2026. Owners with loans maturing in 2026 or 2027 should model a refinance at 6.0 to 6.5% [1][17][18].
  2. The sharpest turn in the group. Vacancy down 110 basis points in one quarter to 5.74% on absorption nearly triple deliveries [150].
  3. Rents lag. Still -3.6 to -4.7% year over year but improving for three quarters; the 2027 crossover is the underwriting case [150][180].
  4. Pipeline at a five-year low. 15,493 units underway, completions down 43% [150].
  5. Regulation is pushing sellers. New 2026 landlord-tenant rules and receivership powers; Monarch sold Fox Hill after 28 years citing renter laws [185][186]. Property tax is flat in the 2026 intervening year [187].

Denver Multifamily

Denver is the sharpest inflection in the top 10. Vacancy fell from 6.84% to 5.74% in a single quarter as absorption ran nearly three times deliveries, and the construction pipeline is at a five-year low. Rents are still down 3.6 to 4.7% year over year, but the decline has narrowed for three straight quarters. Cap rates near 5.6% have not yet moved.

Average cap rate
5.6%
All classes; expected stable in 2026
Apartment Loan Store / JPMorgan [181]
Rent growth
-3.6 to -4.7%
Improving from -6.2% at the Q3 2025 trough
Yardi / Matthews [180][150]
Occupancy
94.26%
Up from 93.16% in Q1
Matthews Q2 2026 [150]
Population growth
+1.1%
Metro about 3.0M in 2025
Census via MacroTrends [184]

Denver Cap Rate Range by Asset Class

Where deals are clearing. Hover each range.
4%5%6%7% Class A 4.9 to 5.4% Class B 5.5 to 6% Class C 6.2 to 7% avg 5.6% debt 6.07%
Cap rate rangeMarket averageAgency loan rate
Sources: Apartment Loan Store [181]; Commercial Real Estate Direct [186]; Mile High CRE [188]. Class splits are interpolated around the published average.

Denver vs. National Fundamentals

Hover a bar. Negative means rents are falling.
Rent growth, year over year 0%-2%-4%+2% Denver -3.6 to -4.7% U.S. -0.8% Vacancy 0%5%10%15% Denver 5.7% U.S. 4.3 to 8.9%
DenverUnited States
Sources: Matthews [150]; Yardi Matrix [180]; Apartment List [25]; CBRE [26].

Supply Pipeline, U.S. and Denver

The delivery wave is ending.
MetricNationalDenverRead-through
Deliveries382,000 projected for 2026 [28]2,020 units in Q2; 9,201 trailing 12 months, down 43% [150]2024 record: 18,558 units
Under construction475,000 units, 3.5% of inventory [27]15,493 units, lowest in at least five years [150]Well below the 10.02% of inventory peak in Q4 2022
Absorption vs. deliveries362K vs 358K, four quarters [27]5,902 absorbed vs. 2,020 delivered, Q2 [150]Absorption up 58% YoY
2026 outlookPeak then tighten [29]Fundamentals set to improve as supply cools [182]Cap rates stable in 2026 [181]
Supply pressure by submarketDowntown and RiNo carried the 2024 wave; suburban Golden and Aurora trading [186][188]Civic Lofts repriced at $30M as the market resets [188]
Price trend$253,968 per unit in 2025 sales [121]Repricing continues ahead of the rent recovery

Denver Submarket Snapshot

The largest cities in the Denver-Aurora-Lakewood, CO metro. Rent and rent growth from Apartment List (Aug 2026); multifamily units permitted (buildings of 5+ units) from the Census Building Permits Survey. Permits lead construction by 12 to 24 months. Rows alphabetical; hover a row for detail.
SubmarketMedian rent
Apartment List, Aug 2026 [207]
Rent, year over year
Apartment List [207]
MF units permitted, 2025
Census BPS [208]
MF units permitted, 2026 through Jul
Census BPS [208]
2026 permit pace vs. 2025
annualized
Aurora$1,525-4.6%405286+21%
Broomfield$1,987-2.1%88019-96%
Castle Rock$1,690-0.2%00n/a, no 2025 permits
Commerce City$2,462-1.5%4430-100%
Englewood$1,439-4.3%420-100%
Golden$1,709-5.3%00n/a, no 2025 permits
Lakewood$1,618-3.9%00n/a, no 2025 permits
Littleton$1,589-1.9%1,003422-28%
Lone Tree$1,888-3.0%4010-57%
Northglenn$1,544-4.2%00n/a, no 2025 permits
Parker$1,907-4.4%8130-100%
Thornton$1,743-3.2%00n/a, no 2025 permits

Denver Transactions and Deal Flow

Denver is repricing ahead of its rent recovery. August's headline trade was Fox Hill in Golden at $209,150 per unit, sold by a 28-year owner who cited Colorado's new renter laws [186].

PropertySubmarketUnitsBuyer / SellerPrice / CapReported
Fox Hill ApartmentsGolden, west of Denver153Sierra Parkway Communities; sold by Monarch Investment and Management Group after nearly 30 years of ownership (JLL)$32MAug 10, 2026 [236]
Vantage at LovelandLoveland, northern Front Range288JB Matteson; sold by Vantage Communities (Marcus and Millichap). Completed 2024UndisclosedAug 28, 2026 [236]
Seasons at Horsetooth CrossingFort Collins, northern Front Range208Sold by The Rainier Cos.; 1,038 square foot average unit$62.7MAug 20, 2026 [236]

Multifamily Capital Markets

Agency lending (Fannie Mae and Freddie Mac) remains the workhorse: a combined $176 billion cap for 2026, half of which must go to affordable housing. As of Aug 31 low-leverage agency loans price in the mid-5s and higher-leverage quotes sit just above 6% [40]. Across all multifamily products, quotes run 5.43% to 6.63% [220]. CBRE put the average multifamily loan spread at 162 basis points in Q2, 15 tighter than a year ago, with lenders competing on price rather than leverage [219]. Bank bridge money runs SOFR plus 225 to 325 basis points, debt funds SOFR plus 300 to 450.

Agency Multifamily Rates, 2026 Trend

Freddie Mac indicative 5-year fixed at 1.25x debt coverage and 65% loan-to-value, top of the published range. One source throughout. Hover the points.
6.4% 6.0% 5.6% 5.2% Jan 20 Mar 9 Aug 31 5.42% 5.29% 6.07%
Source: BWE Market Rates [40], one rate sheet at three dates (Jan 20, Mar 9 and Aug 31, 2026). Indicative levels only; Freddie Mac prices each loan individually and does not publish pricing.

Lending Landscape

Programs, caps, and terms relevant to Denver owners.
ItemCurrentSource
Agency 2026 purchase cap$88B each, $176B totalFHFA [5]
Mission-driven minimum50%FHFA [5]
Freddie Mac 5-year fixed, higher leverage (1.25x / 65%)5.92-6.07%BWE, Aug 31 [40]
Fannie Mae 5 / 7 / 10-year, 65% LTV, 1.35x5.56-5.96% / 5.62-6.02% / 5.68-6.08%BWE, Aug 31 [40]
Freddie Mac 5 / 7 / 10-year, 60% LTV, 1.30x5.87-6.02% / 5.92-6.07% / 5.88-6.03%BWE, Aug 31 [40]
Max LTV / min DSCRAgency tiers run to 80% LTV at 1.25x; best pricing at 55 to 65% LTV and 1.35 to 1.55x. Loans actually closing averaged 63.3% LTV and 1.43x in Q2BWE, Aug 31 [40]; CBRE Q2 2026 [219]
Bridge floating, bank / balance sheetSOFR + 225 to 325 bp (about 5.9 to 6.9%)Crittenden [41]
Bridge floating, debt fundSOFR + 300 to 450 bp (about 6.6 to 8.1%)RRA Capital [42]
Multifamily rate range (all products)5.43% to 6.63%Northmarq, Aug 25 [220]
30-year home mortgage (context)6.71%Freddie Mac PMMS, week of Sep 3 [7]

Colorado

Colorado's economy is growing slowly. The Leeds School of Business projects 0.6% job growth in 2026, about 17,500 jobs, after 0.4% in 2025, well short of the 1.2% economists expected a year earlier. Labor constraints are the stated reason. Metro Denver population grew 1.1%. The 2026 landlord-tenant laws are the operating change owners are reacting to.

Colorado job growth, 2025
0.4%
vs. 1.2% forecast a year earlier
CU Leeds Business Research [183]
2026 forecast
0.6%
About 17,500 jobs
CU Leeds [183]
Metro population, 2025
+1.1%
About 3.0M; +2.8% since 2020
Census via MacroTrends / Metro Denver EDC [184]
2026 landlord laws
In effect
Deposit cap, receivership, local enforcement
Spencer Fane [185]

Colorado Job Growth

Annual. Hover bars.
0%1%2% Colorado 2024 fcst 1.2% Colorado 2025 0.4% Colorado 2026 fcst 0.6% Texas 2026 fcst 2%
Sources: CU Leeds School of Business Colorado Business Review [183]; Dallas Fed [9].

State-Level Operating Factors

Costs and policy that hit Denver net operating income directly.
FactorStatusRead-through
Property insuranceHail and wildfire exposure keep Colorado premiums among the fastest-rising in the WestModel renewals at double-digit increases
Property tax2026 is an intervening year: values based on the period ending June 30, 2024 and generally flat [187]Next revaluation 2027; post-Gallagher split assessment rates
Population and migrationMetro about 3.0M in 2025, +1.1%; +2.8% since 2020 [184]Immigration-driven; domestic migration slowing
RegulationHB25-1249 deposit cap and SB25-020 enforcement and receivership powers effective 2025 to 2026 [185]Long-time owners citing the rules as a reason to sell [186]
Peer metros (Q2 2026)Phoenix vacancy 11.3%, rents -2.2% [95]. Seattle vacancy 6.7% [122]. DFW rents -1.6 to -2.1% [22]Denver has the weakest rents and the strongest quarterly absorption of the group

National Rates and the Fed

The Fed held at 3.50 to 3.75% in July with an unusual three-member vote in favor of raising. Futures now put a quarter-point increase at the Sep 15 to 16 meeting at about 58%, after the Jackson Hole speech pushed the odds as high as 66%. The 10-year Treasury closed Sep 4 at 4.78%, its highest of the year, and August payrolls came in at 162,000 with unemployment steady at 4.1%.

10-Year Treasury
4.78%
Up from 4.19% on Jan 2; 4.73% on Aug 28
U.S. Treasury, Sep 4 [1]
Fed Funds Target
3.50 to 3.75%
Held Jul 29. Three votes to raise
Federal Reserve [17]
SOFR
3.66%
Sep 3. Up from 3.61% on Jun 3
NY Fed, Sep 3 [35]
Next Fed Meeting
Sep 15 to 16
Futures price about a 58% chance of an increase
Federal Reserve [17]; CME FedWatch via CNBC [217]
CPI / PCE
3.4% / 3.7%
Jul CPI 3.4% (core 2.5%). Jul PCE 3.7% (core 3.3%)
BLS, Aug 12 [36]; BEA, Aug 26 [216]

The Rate Stack: How a Denver Loan Gets Priced

Stacked from the Fed's policy rate up to what a borrower actually pays. Hover each layer.
Fed Funds midpoint 3.625% +1.16% +1.29% spread 10-year Treasury 4.78% Agency 5-year 6.07% 0%
Policy rate (Treasury)Term premium (Treasury)Lender spreadAll-in loan rate
Sources: Federal Reserve [17]; U.S. Treasury, Sep 4 [1]; BWE rate sheet, Aug 31 [40]. Decomposition is illustrative; spreads vary by leverage, term, and borrower, and a 5-year agency loan is priced off the 5-year index, not the 10-year.

10-Year Treasury vs. 30-Year Mortgage Rate, 1980 to today

Why apartments rent: the mortgage rate sets the cost of buying a house, and the gap between it and the Treasury is the part of that cost the market has added since 2022. Monthly averages, percent. Lower panel: mortgage rate minus Treasury, in percentage points. Hover for any month.
10-Year Treasury
4.77%
Daily close, 2026-09-03
FRED DGS10 [191]
30-Year Mortgage
6.71%
Freddie Mac PMMS, week of 2026-09-03
FRED MORTGAGE30US [192]
Spread, latest month
1.93 pts
1980 to date average 1.84 pts
FRED, monthly averages [191][192]
0%4%8%12%16%024198019841988199219962000200420082012201620202024 Spread, percentage points
30-year fixed mortgage (Freddie Mac)10-year TreasurySpread
Sources: FRED series DGS10 [191] and MORTGAGE30US [192], monthly averages of daily and weekly data, refreshed each build (2026-09-04).

Global Backdrop

Global bond yields moved higher again as central banks turned from cutting to tightening. The European Central Bank raised its deposit rate to 2.25% in June, the Bank of Japan reached 1.00% for the first time since 1995, and the Japanese 10-year crossed 3% on Sep 2. Energy prices are elevated on Strait of Hormuz supply disruption, which adds to inflation.

10-Year Government Bond Yields

Where the U.S. sits vs. peers. Hover a bar for context.
0% 2% 4% 6% United States 4.78% United Kingdom 4.70% Germany 3.40% Japan 2.97%
Sources: U.S. Treasury, Sep 4 [1]; Bank of England, Sep 2 [209]; Deutsche Bundesbank, Sep 4 [210]; Japan Ministry of Finance, Sep 3 [211]. All four are the issuing authority's own published series.

Global Policy and Risk Snapshot

Central-bank posture and macro risks that feed into Denver borrowing costs.
FactorStatusWhy Denver cares
European Central BankDeposit facility 2.25%, raised from 2.00% effective Jun 17, 2026 [212]The first ECB increase of this cycle; keeps global yields anchored higher
Bank of EnglandBank Rate 3.75%, held Jul 30; next decision Sep 17 [209]Gilt yields still rising to 4.70%, an inflation worry [209]
Bank of JapanPolicy rate 1.00%, raised Jun 16 and held Jul 31 [213]. JGB 10-year 2.97%, above 3% on Sep 2 [211]Less Japanese demand for Treasuries, so higher U.S. yields
Oil and energyElevated Brent $96.02, WTI $91.48 on Sep 1; Hormuz flows 4.9 million barrels a day in Q2 [214]Minus for inflation and Fed posture; no local energy offset
U.S. dollarIndex 99.16 on Sep 4, down 0.5% over the month and up 1.4% year to date [38]A weaker dollar makes U.S. property cheaper for foreign buyers
Sources: European Central Bank [212]; Bank of England [209]; Bank of Japan [213]; Japan Ministry of Finance [211]; EIA [214]; Trading Economics [38].

Sources

Show the 46 sources cited in this edition
  1. U.S. Department of the Treasury: Daily Treasury Par Yield Curve Rates, 2026 (10-year constant maturity; 4.78% on Sep 4, 2026)
  2. FHFA: 2026 Multifamily Loan Purchase Caps
  3. Freddie Mac: Primary Mortgage Market Survey
  4. Federal Reserve Bank of Dallas: Texas employment forecast strengthens (Jul 17, 2026)
  5. Federal Reserve: FOMC Minutes, July 28 to 29, 2026
  6. CNBC: Divided Fed holds interest rates steady (Jul 29, 2026)
  7. CRE Daily: Dallas Multifamily Rents Slide in 2026
  8. Apartment List: National Rent Report
  9. CBRE: Q1 2026 U.S. Multifamily Figures
  10. Cushman and Wakefield: U.S. Multifamily MarketBeat
  11. Apartments.com: The Supply Slowdown: 2026 Multifamily Outlook
  12. NAHB: Multifamily Market Expected to Cool in 2026
  13. Federal Reserve Bank of New York: Secured Overnight Financing Rate (SOFR), 3.66% for Sep 3, 2026
  14. BLS: Consumer Price Index, July 2026; CNBC: CPI report July 2026
  15. Trading Economics: U.S. Dollar Index (DXY), 99.16 on Sep 4, 2026
  16. BWE: Market Rates, as of Aug 31, 2026 (Fannie Mae DUS and Freddie Mac conventional fixed-rate ranges by term, DSCR and LTV tier); earlier BWE sheets as of Jan 20, 2026 and Mar 9, 2026 via the Internet Archive
  17. The Crittenden Report: Bridge lenders are flocking to multifamily
  18. RRA Capital: The bridge lending market floodgates will open in 2026
  19. Kidder Mathews: Phoenix Multifamily Market Report Q2 2026
  20. Multi-Housing News / Yardi Matrix: Top 10 Markets for Multifamily Transactions (2025 data; Mar 11, 2026)
  21. Kidder Mathews: Seattle Multifamily Market Report Q2 2026
  22. Matthews: Denver Multifamily Market Report Q2 2026
  23. Yardi Matrix: Denver Multifamily Market Report, June 2026
  24. Apartment Loan Store: Cap rates in Denver; JPMorgan Chase: Denver Multifamily Market Outlook
  25. Northmarq: Denver multifamily strengthens as supply cools
  26. CU Leeds School of Business: Colorado's economic forecast 2026; CPR: Colorado forecast to add more jobs next year
  27. MacroTrends (Census data): Denver metro population; Metro Denver EDC: Population
  28. Spencer Fane: 2025-2026 Colorado landlord-tenant updates
  29. Commercial Real Estate Direct: Denver-area apartment property sells for $32M (Aug 13, 2026); Hoodline: Monarch sells Fox Hill after 28 years
  30. Colorado Division of Property Taxation: Understanding property taxes in Colorado; Usaj Realty: 2026 tax bill guide
  31. Mile High CRE: Civic Lofts trades for $30M as Denver repricing continues; Luxury community fetches $56M
  32. FRED (Federal Reserve Bank of St. Louis): DGS10, Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity (daily; source Federal Reserve H.15)
  33. FRED (Federal Reserve Bank of St. Louis): MORTGAGE30US, 30-Year Fixed Rate Mortgage Average (weekly; source Freddie Mac Primary Mortgage Market Survey)
  34. Apartment List Research: Data and rent estimates downloads (city-level rent estimates, rent growth year over year, and vacancy index; monthly)
  35. U.S. Census Bureau: Building Permits Survey, place-level monthly and annual files (units authorized in buildings with 5 or more units)
  36. Bank of England: Interactive Statistical Database, series IUDSNPY, 10-year nominal par gilt yield (4.70% on Sep 2, 2026); Bank Rate 3.75%, held Jul 30, 2026
  37. Deutsche Bundesbank: Daily yield of the current 10-year Federal bond (3.40% on Sep 4, 2026)
  38. Japan Ministry of Finance: Japanese Government Bonds, interest rate (10-year 2.97% on Sep 3, 2026; 3.01% on Sep 2)
  39. European Central Bank: Key ECB interest rates (deposit facility 2.25% effective Jun 17, 2026)
  40. Bank of Japan: Statement on Monetary Policy, Jul 31, 2026; Change in the Guideline for Money Market Operations, Jun 16, 2026 (policy rate 1.00%)
  41. U.S. Energy Information Administration: Brent and WTI spot prices (Brent $96.02, WTI $91.48 on Sep 1, 2026); Short-Term Energy Outlook, August 2026 (Strait of Hormuz flows 4.9 million b/d in 2Q26 against 21.6 million b/d in 4Q25; Brent forecast to average about $85/b in 3Q26)
  42. Bureau of Economic Analysis: Personal Income and Outlays, July 2026 (Aug 26, 2026) (PCE 3.7%, core 3.3%)
  43. CNBC: Markets see Warsh endorsing a rate hike in September (Aug 31, 2026); Strong jobs report reignites rate hike fears (Sep 3, 2026), both citing CME FedWatch fed funds futures probabilities
  44. CBRE: Commercial Real Estate Lending Fundamentals Remain Strong in Q2 2026 (Aug 3, 2026) (multifamily loan spread 162 bp, LTV 63.3%, DSCR 1.43x, debt yield 10.2%)
  45. Northmarq: Commercial mortgage rates and spreads, as of Aug 25, 2026 (agency, FHA, life company and CMBS multifamily quotes)
  46. REBusinessOnline: Monarch Investment Sells 153-Unit Fox Hill Apartments in Golden, Colorado for $32M (Aug 10, 2026); Vantage Communities Sells 288-Unit Vantage at Loveland (Aug 28, 2026); Rainier Cos. Sells 208-Unit Seasons at Horsetooth Crossing in Fort Collins for $62.7M (Aug 20, 2026)
Disclosures. Compiled Sep 4, 2026 from publicly available sources; figures are as reported by each source on the date shown and have not been independently verified. Where sources conflict, the range is shown. Items marked "Data unavailable" were not published or not captured in the period. Not investment advice.
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