As Denver’s skyline fills with new apartment developments, landlords are facing an oversupply of units and fierce competition for tenants. To stand out, many property owners are offering steep incentives — often covering the first month or two of rent — to lure renters and quickly fill vacancies. These short-term perks are turning heads in a city where finding an apartment was once notoriously difficult.
According to the Denver Apartment Association, more than 7,000 new units were added to the market in the past year, with additional projects already underway. This construction boom has swelled rental inventory and shifted the balance of power in Denver’s housing market, giving tenants more leverage and forcing landlords to rethink their strategies.
Should free rent be the new norm?
Offering temporary incentives to attract tenants is emerging as a widely used strategy for filling rental units. By providing perks such as one or two months of free rent, landlords aim to secure leases quickly rather than letting prospective renters shop around. This approach has gained traction nationwide, with Denver now joining the broader trend.
According to Zillow, roughly 30% of rental listings in 2023 included at least one concession — ranging from free rent to waived parking fees — to entice new tenants. Over time, these incentives have grown in popularity as a way to attract renters without permanently lowering monthly rent prices.
Long-term market effects
Despite current challenges, periods of oversupply are neither new nor unusual in fast-growing cities. As demand catches up, something analysts expect given that Denver now ranks as the nation’s sixth-fastest-growing economy, rents are projected to stabilize over time. For now, incentives serve as a temporary balancing tool, offering renters short-term perks while helping landlords fill vacancies.
As Denver continues to expand, its rental market is expected to remain fluid. With more units on the way, incentives will likely continue to play a key role in shaping the city’s housing landscape. As conditions shift, landlords are becoming increasingly creative with their offers, adapting to a market that now favors renters more than in previous years. Tenants, meanwhile, are benefiting from their newfound leverage, using negotiating power to secure better deals in a market traditionally dominated by landlords. Free rent promotions appear to be the most practical compromise, helping tenants save money while allowing property owners to keep units occupied.
Over time, this balance will undoubtedly evolve, with power continuing to shift back and forth between renters and landlords as it has throughout history. For now, at least, free rent has provided a temporary fix in an ever-changing market.
