Meta Description:

Discover the key vacation rental trends shaping Denver’s market in 2023, from emerging neighborhood hotspots to changing guest preferences. Essential reading for property investors looking to capitalize on this year’s most significant short-term rental opportunities and challenges.
_______________________________

2023 Denver Vacation Rental Trends: What Property Investors Need to Know

Denver’s vacation rental market continues to evolve rapidly in 2023, presenting both new opportunities and challenges for property investors. Understanding these emerging trends is crucial for positioning your investment strategy effectively in this competitive landscape.

With shifting travel patterns, evolving guest preferences, and ongoing regulatory developments, today’s successful investors are those who adapt their approach based on current market indicators rather than historical assumptions.

This analysis breaks down the most impactful trends we’re observing across Denver’s short-term rental ecosystem in 2023, with actionable insights you can apply to your investment decisions.

Neighborhood Performance Shifts

While Downtown and RiNo have traditionally dominated Denver’s STR market, 2023 has brought notable performance improvements to several emerging areas. Neighborhoods like Sunnyside, Villa Park, and parts of East Colfax are showing occupancy growth of 15-20% year-over-year, with ADR increases outpacing the city average by 5-8%.

These emerging neighborhoods offer significantly lower acquisition costs while beginning to deliver competitive returns. Investors focused exclusively on traditional hotspots are missing valuable opportunities in these up-and-coming areas, where early positioning can deliver exceptional ROI as these neighborhoods continue their upward trajectory.

Extended Stay Momentum

The most significant shift in Denver’s 2023 rental patterns is the continued growth of extended stays (7+ nights). These bookings have increased 24% year-over-year, with particular strength in residential neighborhoods and properties offering dedicated workspaces.

Properties optimized for these longer stays are achieving 8-12% higher overall revenue despite offering length-of-stay discounts. The operational efficiencies of fewer turnovers further enhance profitability. Forward-thinking investors are now specifically targeting properties with floor plans and locations conducive to these extended bookings.

Amenity Expectations Evolution

Guest expectations continue to evolve in 2023, with several amenities moving from “nice-to-have” to “essential” status. High-speed internet (100+ Mbps) is now considered a baseline requirement, with properties offering premium connectivity experiencing 15% fewer cancellations and stronger reviews.

Outdoor spaces—even modest balconies or small yards—have become significantly more valuable, commanding premiums of 12-18% compared to similar properties without outdoor access. Additionally, flexible spaces that can function as both living areas and workspaces are delivering exceptional returns on investment.

Regulatory Landscape Updates

Denver’s regulatory enforcement has intensified in 2023, with compliance verification becoming more stringent. Properties operating without proper licensing face increased risk of penalties, while compliant properties benefit from reduced competition as non-compliant listings are removed from platforms.

Simultaneously, several adjacent municipalities have clarified their STR regulations, creating new opportunities for investors looking beyond Denver proper. Areas like Wheat Ridge and Edgewater now offer clearly defined regulatory frameworks that support investment while maintaining reasonable compliance requirements.

Changing Booking Patterns

Booking lead times have shifted dramatically in 2023, with last-minute reservations (0-3 days before arrival) increasing by 35% year-over-year. Properties with flexible cancellation policies and responsive management are capturing this growing segment of spontaneous travelers.

Conversely, prime dates during summer months and major events are booking further in advance than in previous years, often 4-6 months ahead. This bifurcated booking pattern requires more sophisticated pricing strategies that can capitalize on both last-minute demand and early planners seeking premium dates.

Your Next Steps

The Denver vacation rental landscape continues to offer exceptional opportunities for informed investors. By aligning your strategy with these emerging trends, you’ll position your investments for sustainable growth in this dynamic market.

At Simplify Renting, we help property investors navigate these evolving trends with personalized market analysis and optimization strategies. Let us help you capitalize on Denver’s most promising short-term rental opportunities.