The real estate market is growing in Colorado year-over-year. It is important to analyze the market as a whole before deciding to buy, sell, or invest in a new property in the Boulder housing market or anywhere. Boulder, Colorado is located in northern Colorado. The namesake boulders are remnants from the last ice age, but some originated in the Rocky Mountains to the west. Bounder is quirky and weird, something that made it the perfect setting for the TV show “Mork and Mindy”.
However, the ambiance isn’t going to bring people here to stay. Boulder had long been a regional services hub, but it is also a suburb of Denver thirty minutes to the south. Boulder itself is home to around a hundred thousand people. It isn’t fair to say that there are suburbs that increase the number of people in the Boulder real estate market. Towns like Longmont and Lyons are all treated as suburbs of Denver or the expanding conglomerate along the Front Range.
If you consider the closest towns part of the Boulder housing market, the Boulder metro area includes roughly 330,000 people. The city has seen growth as people move from the expensive, overcrowded Denver area to a city where you can still hike in the mountains and see the hills. The city has around 200 miles of hiking trails and massive amounts of green space. Is Boulder still one of the hottest real estate markets in the country? Let’s take a deep look at the latest Boulder housing market trends to conclude.
Boulder Real Estate Market Trends 2021
Boulder County comprises the Boulder, CO Metropolitan Statistical Area. From the perspective of housing demand and supply, Boulder County is a seller's market. More people are looking to buy than there are homes available. In October 2021, the median listing home price in Boulder County, CO was $695K, trending up 11.2% year-over-year, according to Realtor.com. The median listing home price per square foot was $331. The median home sold price was $705K.
There are 30 cities in Boulder County.
- Paragon Estates has a median listing home price of $2.3M, making it the most expensive city.
- Allenspark is the most affordable city, with a median listing home price of $459K.
- The median listing home price in Boulder City is $899K, trending up 14.5% year-over-year.
- On average, homes in Boulder, CO sell after 42 days on the market.
- The trend for median days on market in Boulder, CO has gone up since last month, and slightly down since last year.
- Newlands has a median listing home price of $2.8M, making it the most expensive neighborhood in Boulder.
- Glenwood Grove – North Iris is the most affordable neighborhood, with a median listing home price of $350K.
According to the Colorado Association of Realtors' monthly report for the Boulder County housing market;
- Closed Sales landed at 350 for single-family homes (- 14.2%) and 134 (- 9.5%) for townhouse-condo properties.
- New Listings were down 26.4 percent for single-family homes and 23.2 percent for townhouse-condo properties.
- The Median Sales Price was up 14.9 percent to $783,650 for single-family homes and 1.6 percent to $436,855 for townhouse-condo properties.
- The Average Sales Price was up 19 percent to $1,020,934 for single-family homes and 10.1 percent to $542,175 for townhouse-condo properties.
- Days on Market decreased 15.4 percent for single-family homes but increased 13.6 percent for townhouse-condo properties.
- Months Supply was down 52.9 percent for single-family homes to 0.8 and down 70.4 percent for townhouse-condo properties to 0.8.
Boulder Rental Market Trends
The rents are also on the rise in the Boulder housing market. As of December 1, 2021, the average rent for a 1-bedroom apartment in Boulder, CO is currently $1,615. This is a 1% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Boulder decreased by -2% to $820. The average rent for a 1-bedroom apartment decreased by -16% to $1,615, and the average rent for a 2-bedroom apartment decreased by -2% to $2,300.
- The average rent for a 2-bedroom apartment in Boulder, CO is currently $2,300, up 18% compared to the previous year.
- The average rent for a 3-bedroom apartment in Boulder, CO is currently $3,225, up 12% compared to the previous year.
- The average rent for a 4-bedroom apartment in Boulder, CO is currently $4,800, up 14% compared to the previous year.
Boulder Real Estate Market Forecast 2022
According to Zillow Home Value Index, the Boulder real estate market is hot. The typical home value in Boulder is $973,606. From 2019 to 2020, home prices were up by almost 4.2%. This year has been sizzling hot for sellers as over the past year alone the Boulder home values have gone up 19.8% and will continue to rise in 2022, which is an indication that supply and demand curves are moving far from price equilibrium.
The Boulder real estate market has all the earmarks of being sustainable. It has benefited a lot from its proximity to Denver. The unemployment rate of Boulder is below the national average and with a recovering economy to back it up, it will further drop in the coming years. As home prices go up further, the prospect of owning a home in the Boulder real estate market would be more difficult. The real estate investors will have to find foreclosure homes vs the non-distressed homes in Boulder as those homes are available at nearly 20% discount.
Data by Redfin, a full-service real estate brokerage, also shows us that the Boulder housing market is somewhat competitive. Only some homes get multiple offers. The average homes sell for around list price and go pending in around 36 days. Hot homes in Boulder can sell for about 3% above the list price and go pending in around 16 days.
- The typical value of homes in the Boulder Metro Area (Boulder County) is $714,286. (Zillow).
- Boulder Metro home values have gone up 21.2% over the past year and Zillow predicts they will still rise 21.8% over the next twelve months.
- The typical home value of homes in Boulder City is $973,606, up 19.8% over the past year and will continue to rise over the next twelve months.
Here is the Boulder home price appreciation graph by Zillow. It shows us the current home price appreciation forecast until Oct 2022.
Some of the best neighborhoods in or around Boulder, Colorado are Arapahoe Ridge, Colorado University, Gunbarrel, Palo Park, Crossroads, Old North Boulder, Central Boulder, Parkside, Orange Orchard, East Foothills, Country Meadows, and Whittier.
Here are some of the best neighborhoods to invest in Boulder real estate because they have the highest appreciation rates since 2000 (List by Neigborhoodscout.com).
- Darley Ave / S Foothills Hwy
- Iris Ave / Folsom St
- N 95th St / Lookout Rd
- Moorhead Ave / Martin Dr
- Broadway St / Forest Ave
- Flagstaff Rd / Bison Dr
- Broadway St / Spruce St
- Table Mesa Dr / S Lashley Ln
- Thomas Dr / Talbot Dr
Boulder Real Estate Investment Overview 2022
Now that you know where Boulder is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you invest in Boulder rental real estate? Many real estate investors have asked themselves if buying rental property in Boulder is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Boulder housing market forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Boulder we have collected ten evidence-based positive things for those who are keen to invest in the Boulder real estate.
Investing in Boulder rentals will fetch you good returns in the long term as the home prices in Boulder have been trending up year-over-year. Let’s take a look at the number of positive things going on in the Boulder real estate market which can help investors who are keen to buy an investment property in this city.
The Impact of Geography
We said that many people move to the Boulder housing market because of the ample green space. This isn’t going to change, because Boulder borders the Rocky Flats National Wildlife Refuge, multiple ranches that are permanently dedicated green space, and several national forests. The beautiful open land attracts nature enthusiasts who want to hike on weekends while the limits on where they can build contribute to the inflated property values in the Boulder housing market.
Quality of life will rarely lead people to move across the country, but it will lead them to move to the other side of a given metro area. This is why the Boulder real estate market has become incredibly expensive – locals will pay a relative fortune to live here. Sites like Movoto rank Boulder among the top five Denver suburbs to live in. The city is also eminently bikable and walkable compared to other mid-sized cities.
The Massive Student Market
We mentioned that Boulder is home to roughly a hundred thousand people. It is not an exaggeration to say that roughly a third of them attend the University of Colorado in Boulder. One point in favor of a Boulder real estate investment property is that the college generates a steady stream of renters, but you can rent to locals moving here if college demand slacks off. The Boulder real estate market does put you in reach of a great job market. The college fosters high-tech startups.
That keeps many college grads here after they finish school while attracting students in the first place. However, it is offices of Big Tech firms like Google and Microsoft that are more attractive. The Boulder housing market has also been bolstered by the presence of multiple government agencies like the National Center for Atmospheric Research and the National Institute of Standards and Technology. This makes Boulder a good place to start a scientific or technical career, especially if your goal is research.
It also creates high-tech jobs almost immune to the state of the economy. And that's aside from the strong job market in Denver down the highway. The median rent in the Boulder real estate market is 2500 dollars a month. Even in the older downtown area, rents hover around 2300 dollars a month, and that figure is predominantly one and two-bedroom apartments. Rents are inflated by the massive number of students in the Boulder real estate market.
The Relatively Landlord-Friendly Area
Colorado can be described as landlord-friendly. You don’t have to pay interest on deposits. There’s no limit on late fees at the state level. The state doesn’t have a grace period for when someone is late on the rent. Eviction for nonpayment of rent is rather fast. You don’t have to give tenants notice to enter the property. The only downside is that the city limits short-term rentals in most cases to owner-occupied properties. They expressly prohibit renting out Boulder real estate investment properties or second homes.
Boulder Real Estate Market is Relatively Cheaper
We’ve already mentioned the Big Tech firms like Google in Boulder. They’ve had offices in the area for years, but they’re driven to expand here because the Boulder real estate market is relatively cheap, since they’re comparing this to the insane real estate prices in San Francisco. Someone can make 100K a year in San Francisco and rent a box. The same salary in Boulder lets you own a three-bedroom home in the suburbs. For this small elite relocating from Seattle and San Francisco, Boulder is affordable. However, in an area with a median income of 72,000 a year, they just bid up the real estate market and drive up rental rates.
Maybe you have done a bit of real estate investing in Boulder, CO but want to take things further and make it into more than a hobby on the side. The Boulder metro area is becoming a high-tech hub, driving up rental rates and property values. Others are lured here by the promise of high-paying jobs or attending school somewhere they can intern at Big Tech firms without paying a fortune. Boulder’s economy is stabilized by the presence of government research institutes and the proximity to Denver’s buzzing economy.
It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
NORADA REAL ESTATE INVESTMENTS strives to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
Another upcoming market to choose for real estate investment is Frisco, Texas. Frisco is a rapidly growing and appreciating suburb in the Dallas-Fort Worth area. It is so desirable that it attracts locals relocating to the area in addition to those moving to Texas thanks to its lower tax burden, cheaper real estate, and improved quality of life.
If you’re considering Frisco real estate investment, one point in favor of this area over other Dallas suburbs is the diversified real estate market. Frisco was one of the local pioneers in mixed-use developments, walkable neighborhoods modeled off older downtown areas. This is attractive to Millennials. Frisco is also rapidly building multi-family housing, though this is barely keeping up with demand. Yet the Frisco housing market retains a large number of single-family homes.
The other best place to invest in real estate is Vancouver, WA. Vancouver, Washington is a steadily growing, appreciating real estate market. Investors here will profit from Portland’s mistakes while earning greater returns than if they invested in one of the more expensive housing markets in the region. The Vancouver WA real estate market has a sizable student market. Better yet, it isn’t limited to a single school. Washington State University Vancouver has more than three thousand students. It is the second-largest Washington State campus. Gateway Seminary is home to around two thousand graduate students.
Let us know which real estate markets you consider best for real estate investing! If you need expert investment advice, you may fill up the form given here.
Remember, caveat emptor still applies when buying a property anywhere. The information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Market Prices, Trends & Forecasts
Quality of life
Economics that force people to rent
The relatively landlord-friendly area
Silicon Valley refugees