The Denver real estate market presents a profitable opportunity for investors. Real estate is on fire, and demographic changes indicate that this growth is sustainable.
In fact, the United States census revealed that Denver’s population grew by more than 21% in the last decade. Americans are attracted to Denver’s beauty, affordability, and employment opportunities.
Read on for a comprehensive guide to the Denver real estate market. Explore expected trends in the city of Denver to see whether real estate is a worthwhile investment.
Population Changes
Colorado is one of the fastest-growing states in the country. The state as a whole added nearly 750,000 new residents over the past decade. This growth was faster than 43 other states in the country.
Denver is responsible for the vast majority of this growth. Other regions like Boulder and Colorado Springs also experienced population growth.
Colorado is getting more diverse as well. The percentage of white-only residents is declining, while the number of Asians and African-Americans is on the rise. This bodes well for property managers looking to attract the maximum number of prospective tenants.
Home Prices
Like most of the United States real estate market, home prices in Denver are surging. As of the moment, the median home price in Denver is $562,000. Due to limited inventory, 2022 trends point to continued growth in prices.
Real estate experts forecast that Denver home prices will reach $652,000 by the end of 2022. However, this forecast is based on average growth nationwide.
Typically, the city of Denver and the state of Colorado both outpace national averages. Since 2016, Denver home prices have grown two-times faster than the national average. This means that the median home price in Denver could realistically exceed $700,000.
Real Estate Drivers
Many investors want to know what is driving the Colorado real estate market. They also want to know if the growth is sustainable before investing in elevated home prices.
While home prices are on the rise, interest rates are still near record-lows. This gives investors the ability to take out loans with cheaper financing charges.
Another driver of home prices nationwide is a supply shortage. A temporary foreclosure moratorium instituted by the Department of Housing and Urban Development (HUD) is keeping cheap houses off the market.
At the same time, real estate demand is outpacing supply. There is an inventory shortage occurring across the country. Over the past year, it is not uncommon for housing inventory to equal just one month of demand.
However, there is some hope on this side as inventory doubled in the month of September. The number of existing single-family and new construction units increased inventory to over 4000 homes.
Your Guide to the Denver Real Estate Market
Denver is a great city to invest in. Americans are flocking to Colorado, and specifically, the city of Denver. This population growth indicates that housing demand will remain strong.
While home prices may be a turnoff for some investors, expected trends suggest that median prices will continue to rise. If you are interested in the Denver real estate market, contact us today to learn more about our property management operations.
