Rent Prices Are Cooling in 2025—Here’s What Denver Property Owners Should Know

Denver’s Rent Growth Enters a New Phase

In 2025, Denver property owners and investors continue to watch rent trends closely as the local market shifts. Across the country and right here in Colorado, the pace at which rents are rising has slowed from the surges seen just a few years ago. If you’re invested in short-term rentals or considering property management in metro Denver or the foothills, knowing these changes can help you make timely decisions that boost returns and reduce stress.

Denver neighborhoods now showcase a rental market that feels different from what owners were used to during and right after the pandemic. As more properties become available and the housing market cools, renters have a bit more power, but real estate remains a solid source of steady income for those who manage it well.

National Rent Trends: Growth Tapers, Opportunities Shift

Recent data reveals that rent increases have lost steam compared to the 2022 peaks. This year, asking rents in June sat 2.9% higher than a year ago, according to figures
from Zillow’s latest rental report. For property owners, that marks a notable slowdown, but it doesn’t mean rent prices are dropping everywhere.

The cooling is especially evident as single-family rental price growth is projected to land at 2.7% in 2025, down from 4.5% in 2024. Multifamily buildings, like those common near Denver’s downtown, are expected to see just 1.3% rent growth, compared to 2.4% last year.

Despite these softer increases, rents remain elevated—over 36% higher than they were before the pandemic. The Denver area tracks closely with national numbers, giving local owners a reason to pay attention to both broad and neighborhood-level patterns.

June: Insights for Owners on the Ground

The average asking rent nationwide reached $2,069 in June. While that jump from 2024 matters, homeowners have to look beyond just the year-over-year percent change.

Rental affordability remains tight: Typical households need an income of $82,743 per year to afford a standard rental, meaning many Denver-area tenants are stretching their budgets.
Six U.S. metros saw monthly rent drops, including cities like Houston, Tampa, Phoenix, and San Antonio. But in 46 of the 50 largest metro areas—including Denver—rents continue to rise.
Some regions saw sharp increases: Providence rents jumped 6.2%, with Chicago, Indianapolis, Cleveland, and Birmingham following.
Rental concessions now show up in about 35% of listings, with Denver among the cities where landlords are most likely to offer discounts or move-in perks.

For Denver short-term rental owners, these concessions often mean more competition for guest bookings, but also signal increased options for visitors or tenants. Owners who respond quickly to market trends typically see higher occupancy, while those who set and forget their rates or property offerings may fall behind.

The Quest for Affordability: Where Rent Strains the Most

In June’s data, a handful of metro areas—Austin, Minneapolis, Raleigh, Salt Lake City, and St. Louis—stood out as the most affordable places to rent. By contrast, renters in New York, Miami, Los Angeles, San Diego, and Tampa face tougher cost pressures.

The Denver market lands somewhere in between but is trending toward higher affordability challenges, thanks in part to persistent demand and ongoing migration into the region. It’s no secret: Colorado has drawn thousands seeking both jobs and scenery, adding to rental competition.

How Rent Interacts with Inflation

Even as consumer inflation cools, housing—especially rent—is outpacing overall price growth. Over the twelve months ending in July, government data shows rents climbed 3.5%, just below the shelter index’s 3.7% rise.

Properties in Denver reflect national patterns, with rent growth slowed but still absorbing a chunk of household income each month.

Notably, the government’s rent calculations lag behind what’s reported on listing platforms. That’s because rental data usually updates when leases are renewed—which typically happens annually—so market shifts can take several months to show up in national numbers.

Local landlords who stay in tune with real-time trends can adjust pricing more quickly, while tenants often feel the pinch slowly over the course of a lease.

The Tough Reality: Rent Is Less Affordable Than Ever

Thanks to rising rents since 2020, a record number of American households are now “rent burdened.” Federal standards say that if you spend more than 30% of your income on rent, it’s considered a strain; spend 50% or more and you’re “severely rent burdened.” A Harvard analysis found that half of renters now spend at least 30% on rent and utilities, with over a quarter using half their income for housing alone.

These figures are felt in Denver, where wages have struggled to keep pace with housing costs. For property investors and hosts, this means the tenant pool is under more financial stress—even as demand for rentals remains relatively strong. Are you seeing more inquiries from new arrivals to the area, or perhaps receiving more negotiation requests from longer-term renters? This is likely why.

What’s Driving High Rent Prices in Denver?

Several overlapping factors keep Denver rents high:

Inflation pressures: As routine expenses (like repairs, cleaning, and labor) get pricier, landlords pass those rises along, feeding a cycle of higher costs overall.
Limited inventory: With relatively few affordable rentals available, tenants compete more aggressively—especially in walkable or desirable neighborhoods close to downtown or the foothills.
Barriers to buying: First-time buyers get priced out of homeownership due to high interest rates and tight inventory, leading more people to rent longer.
Pandemic aftereffects: Rent discounts and freezes are long gone, and property owners have updated lease prices accordingly.
Remote work’s legacy: Professionals able to work from home often seek out more space in places like Jefferson County or Boulder, boosting suburban rents while urban ones hold steady or fall slightly.
Shifting preferences: There’s increased demand for smaller units—studios and one-bedrooms—which drives up per-room rates.

On top of all these factors, wages are simply rising slower than rent in Colorado. According to one Zillow study, since 2019 rent has grown about one and a half times as fast as local salaries.

Is There Relief on the Way?

While prices have started to drop in a handful of national hotspots, Denver’s path to more affordable rents will likely depend on new construction. Last year saw over half a million new apartments built in the U.S.—a record for the second year running. Projections call for as many as two million more units by 2028, some of which will land in key Front Range cities.

More supply leads to less pressure on existing rentals, and inclusionary zoning laws ensure some of these new units are affordable by design. Owners who invest or manage property in growth corridors may soon find themselves adjusting rates or offering perks to attract guests and long-term tenants alike.

Noticing more “free month’s rent,” waived fees, or other incentives? You’re not alone. Roughly a third of all rental listings across the country now include concessions, with Denver ranked high for this trend. As landlords compete for quality renters, expect these deals to stick around—at least until the new supply is absorbed.

Watching Denver’s unique mix of city energy and stunning natural views, it’s clear the market will keep shifting. But for property owners who stay attentive, adapt quickly, and understand the current dynamics, there remains genuine opportunity—even as the pace of growth cools.