One of the most common questions we’ve been getting lately is: Are rents really going down? The simple answer is yes—but there’s more to the story. If you’re a first-time landlord or a new investor, this might sound alarming, but here’s the truth: the rental market is always evolving. Prices rise, prices fall, and the market shifts with trends and demand. There’s no need to panic. Understanding the “why” behind the numbers is the key, and as Colorado’s trusted leader in residential property management, we’re here to break it down for you.
What’s Driving the Shift? It All Comes Down to Supply.
In 2025, we’re seeing a record number of rental properties on the market, particularly along Colorado’s Front Range. Nearly every zip code from Fort Collins to Colorado Springs has more properties available for rent than for sale.
Take Fort Collins, for example. At the time of writing this in June, there are:
- Rental Units: 1,140
- Homes for Sale: 740
Other zip codes like 80015 and 80206 are also heavily saturated with rental options.
As a result? Rental prices have dropped an average of 7.5% this year.
Rents Going Down Isn’t Just a Colorado Story
Nationwide, the number of active rental listings has outpaced for-sale listings since around 2022—a trend that continues to accelerate. The surge in new apartment construction has flooded the market with more units than it can currently absorb. Many of these are being delivered at the same time, leading to an oversupply, especially in growing regions like the Sunbelt and Mountain West.
What’s happening:
- Rent growth is slowing.
- Vacancy rates are rising.
- Renters have more options.
Even though vacancy rates nationally remain within historical norms, we’re seeing a clear shift toward a renter’s market.
What This Means for Colorado Rental Owners
So what does this translate to for rental property owners here in Colorado? In short, it means more competition. It calls for greater flexibility and an understanding that you have to be aggressive with your pricing strategy in order to remain ahead of the competition. It means listening to the recommendations of your Leasing Agent or renewals team when it comes to setting the right price and expectations. It means ensuring that the property you present is well maintained and up to date with current trends and appeals to the current renter demographic. If your home is currently rented and up for renewal, it means making an effort in retaining good tenants by offering incentives to stay.
At Real Property Management Colorado, we know how to navigate these changes. Flexibility and efficiency are where we shine.
Looking Ahead: What’s Next for 2025?
The oversupply of rentals is expected to continue throughout the year. Projects that began during the post-pandemic construction boom are still hitting the market.
Meanwhile:
- High mortgage rates are keeping more people in the rental pool longer.
- Some homeowners are shifting to renting instead of selling, further increasing supply.
This means rental property owners will need to stay sharp, proactive, and responsive to market trends.
We’ve Got Your Back
With over 20 years of experience managing rental properties in Colorado, we’ve seen every twist and turn the market can offer. Our team is here to help you navigate this season and whatever comes next.
Stay positive through change—because we’re in this together. Real Property Management Colorado is ready to help you succeed today, tomorrow, and for years to come.
