Real estate market is growing in Colorado year-over-year. If you’re keen to invest in the Boulder real estate market in 2020 and buy before prices become out of reach, you must read till the end. It is important to analyze the market as a whole before deciding to buy, sell, or invest in a new property in Boulder 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, ambiance isn’t going to bring people here to stay. Let’s learn more about the Boulder area before sharing ten reasons to consider Boulder real estate investment. 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 300,000 people. The city has seen growth as people move from the expensive, over-crowded 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 for investors in 2020? Let’s take a deep look at the latest Boulder housing market trends to come to a conclusion.
Boulder Real Estate Market Forecast 2020
The real estate data from Zillow shows that the median home value in Boulder is $749,300. Boulder home values have gone up 4.3% over the past year and their Boulder real estate market prediction is that the prices will rise 1.7% within the next year. The median list price per square foot in Boulder is $541, which is higher than the Boulder Metro average of $349.
The median price of homes currently listed in Boulder is $850,000 while the median price of homes that sold is $736,600. The median rent price in Boulder is $2,500, which is higher than the Boulder Metro median of $2,300.
Here is the Boulder, CO real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 1.7% till Aug 2020.
Boulder Housing Market Forecast 2019 – 2021
The Boulder housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the trend prediction for Denver is 82%. Accordingly, LittleBigHomes.com estimates that the probability for rising house prices in Boulder, CO is 82% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Boulder, Colorado Real Estate Market Forecast.
Boulder Real Estate Market Trends
We will discuss some of the most recent housing trends in the Boulder area. Currently, Trulia has 568 resale and new homes for sale in Boulder, CO, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sale price in Boulder, CO is $700,000. Homes are selling for about $537/sqft. Since 2016 the median homes prices in Boulder have remained around the $700,000 mark, which in an indication that supply and demand curves are moving closer to price equilibrium.
The Boulder real estate market has all the earmarks of being sustainable. It has benefited a lot from its close proximity to Denver. The unemployment rate of Boulder city is well below the national average and with a strong 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. We have given you some Boulder foreclosure statistics as well in the below section.
In the past month, 147 homes have been sold in Boulder, CO on Redfin.com. In addition to houses in Boulder, there were also 184 condos, 95 townhouses, and 14 multi-family units for sale in Boulder last month. As per their real estate data, the Boulder housing market is somewhat competitive. Homes in Boulder receive 1 offers on average and sell in around 45 days.
The average sale price of a home in Boulder was $710K last month, up 1.5% since last year. The average sale price per square foot in Boulder is $405, up 6.6% since last year. Homes typically receive 1 offer.
Properties for sale in the Boulder housing market sell for about 2% below list price and go pending in around 45 days. If it is a hot home, it can sell for around list price and go pending in around 20 days in the Boulder area.
Boulder Real Estate Trends in Sep 2019: Source Redfin.com
|Median List Price||$899K|
|Avg. Sale / List||98.00%|
|Median List $/Sq Ft||$444|
|Avg. Number of Offers||1|
|Median Sale Price||$710K|
|Avg. Down Payment||60.00%|
|Median Sale $/Sq Ft||$405|
|Number of Homes Sold||147|
There are 756 homes for sale in Boulder, CO on Realtor.com. The Boulder home prices range from $38.9K to $10M. 63 of which were newly listed within the last week. Additionally, there are 188 Boulder rentals for sale. Their rent price ranges from $950 to $12K per month.
According to their statistics, in August 2019 the Boulder housing market was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
Ideally a buyer would prefer a sale to asking price ratio that's closer to 90%. In Boulder sellers have held good leverage in these negotiations. On an average, they could sold homes for 98.34% of the asking price in the past two years. A seller would always prefer scenarios which can yield a ratio of 100% or higher.
In August 2019, the median list price of homes in Boulder, CO was $830K, trending up 3.9% year-over-year. The median listing price per square foot was $428. The median sale price was $729.3K. On average, homes in Boulder, CO sell after 57 days on the market. The trend for median days on market in Boulder, CO has gone up since last month, and slightly up since last year.
The median list price in Boulder, CO is $950,000 on Movoto.com. The median list price in Boulder went down 1% from September to October. Boulder's home resale inventories is 597, which increased 1 percent since September 2019. The median list price per square foot in Boulder is $446. September 2019 was $446. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in October.
Boulder, CO Single Family Homes Statistics
Following the real estate market decline in 2007 in the U.S., single family rental homes became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental properties have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units. As per the real estate company called Neigborhoodscout.com, the median house price in Boulder, CO is $827,899, which indicates that home prices in Boulder are well above the national average for all cities and towns in the United States.
Single-family detached homes are the single most common housing type in Boulder, accounting for 40.89% of the city's housing units. Small one or two bedroom single-family detached homes are most common housing units found in Boulder.
Other types of housing that are prevalent in Boulder include large apartment complexes, duplexes, homes converted to apartments and a few row houses. Boulder has a mixture of owner-occupied and renter-occupied housing.
Currently, there are 330 single family homes for sale in Boulder, CO on Zillow. Additionally, there are 111 single family homes for rent in Boulder, CO. Under potential listings, there are about 0 Foreclosed and 10 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Boulder, CO Foreclosures And Bank Owned Homes 2020
As per the Boulder foreclosure data by Zillow the percent of delinquent mortgages in Boulder is 0.2%, which is lower than the national value of 1.1%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Boulder homeowners underwater on their mortgage is 4.6%, which is higher than Boulder Metro at 4.0%.
|Foreclosures in Boulder||16|
|Homes for Sale in Boulder||269 (RealtyTrac)|
|Median List Price||$845,000 (3% ⇓ vs Jul 2018)|
There are currently 16 properties in Boulder, CO that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 269. In August 2019, the number of properties that received a foreclosure filing in Boulder, CO was 50% higher than the previous month and 40% lower than the same time last year.
Best Neighborhoods to Invest in Boulder Rental Real Estate
If you are looking to invest in the Boulder rentals, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability.
Desirability brings demand. Demand would raise the price of your Boulder rental real estate and you should be able flip it for a lump sum profit. When looking to invest in Boulder real estate, you need to find places where the expected property appreciation forecast is positive.
The running costs for owning and managing an Boulder rental property should be low. The neighborhoods in Boulder must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 13 elementary schools, 13 middle schools, 11 high schools and 17 private & charter schools. There are 58 neighborhoods in Boulder, Colorado and many schools are rated above average.
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.
Flatirons has a median listing price of $1.8M, making it the most expensive neighborhood. Glenwood Grove – North Iris is the most affordable neighborhood in Boulder, with a median listing price of $357,000.
Here are the best neighborhoods to invest in Boulder rental real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
|1||Darley Ave / S Foothills Hwy|
|2||Moorhead Ave / Martin Dr|
|3||Iris Ave / Folsom St|
|4||N 95th St / Lookout Rd|
|5||Flagstaff Rd / Bison Dr|
|6||Broadway St / Forest Ave|
|8||Table Mesa Dr / S Lashley Ln|
|10||U of Colorado Boulder / Regent Dr|
Is Boulder a Good Place to Invest in Real Estate?
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 a rental property in Boulder is 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 2019 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 but we have collected ten evidence based positive things for those who are keen to invest in the Boulder rentals in 2019.
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.
We’ll focus on real reasons to invest in the Boulder real estate instead of giving you vague appeals to buy a house or an investment property because of general ambiance and mere promises of future growth.
1. The Impact of Geography
We said that many people move to the Boulder housing market because of the ample greenspace. This isn’t going to change, because Boulder borders the Rocky Flats National Wildlife Refuge, multiple ranches that are permanently dedicated greenspace, 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 contributes to the inflated property values in the Boulder housing market.
2. The Massive Student Market
We mentioned that Boulder is home to roughly a hundred thousand people. It is not 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.
3. The Economics that Force Many to Rent
The average home in the Boulder housing market costs around 750,000 dollars. However, local incomes aren’t in line with that. The city’s affordability rating is a 76; average is 100.
For comparison, the average home in Denver costs around half a million dollars. Conversely, this means we can’t promote the Boulder real estate market based on its affordability.
4. The Cooling Housing Market
The Boulder housing market is experiencing a “chill”. Listings were up nearly ten percent in 2019. Median home prices only went up one percent in 2019. The opportunity to find bargains has increased as the time on market has grown.
For example, the affordable properties – townhomes and condos – are actually declining in price. Their median price fell nearly four percent in 2019, while time on market hit two months.
And the largest rental market in town, college students, don’t necessarily care about having a yard or may actively avoid anything that requires maintenance.
5. The Job Market
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 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.
6. The Incredible Rate of Return on Boulder Investment Properties
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.
7. The Quality of Life Ratings
Quality of life will rarely lead people to move across 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.
8. 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.
9. The Low Tax Burden
One point in favor of Colorado is its comfortable “tax climate”. The state has low property taxes. The state income tax is a flat 4.63 percent. If you own a Boulder real estate investment property, the relatively high sales tax rate doesn’t affect your business decision.
10. The Silicon Valley Refugees
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.
Investing in Boulder Real Estate: The Conclusion
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.
Therefore, finding a good Boulder real estate investment opportunity would be a key to your success. If you invest wisely in Boulder rental real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Boulder rentals are, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with. However, it is not easy to get that kind of a deal in Boulder as it is among the most expensive real estate markets in the U.S.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments in Boulder you should focus on neighborhoods with relatively high population density and employment growth.
Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Boulder, CO.
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 area, 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.
The aim of this article was to educate investors who are keen to invest in Boulder real estate in 2020. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2020
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.
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.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Quality of life
Economics that force people to rent
The relatively landlord friendly area
Silicon Valley refugees
Market Prices, Trends & Forecasts