Will the Denver Housing Market Crash in 2023?
Is the Denver housing market moving in favor of buyers in 2023? As the Denver Metro Housing Market continues to evolve, this blog will keep you up-to-date. The Denver housing market experienced a slight slowdown in January 2023, with 2,041 homes and condos sold in the 11-county metro area, a decline from the previous month and year, according to DMAR's latest market report.
However, the market is showing signs of stabilization as pending sales rose by more than 50% from December, indicating that buyers are gradually returning to the market as mortgage rates stabilize. Although the median home price for a single-family home in January was $595,000, down slightly from the previous month and year, low inventory levels may push prices higher as the weather warms up.
With sellers listing 62.2% more properties in January than in December, the number of available properties remains low, making it challenging for buyers to find the right home. Real estate agents are seeing multiple offers at every price point, with homes selling over the asking price and buyers waiving contingencies.
Despite the competition, buyers are still in the market, taking their time to find the right home and factoring in rate buydowns into their purchase costs. Overall, the Denver housing market is showing signs of stability, with buyers slowly returning to the market and prices holding steady. While the number of homes sold in January 2023 was lower than the previous month and the same period last year, pending sales increased, indicating a resurgence in buyer activity.
The stabilizing mortgage rates are a contributing factor in bringing buyers back into the market. However, low inventory levels remain a challenge for buyers, making it crucial for sellers to price their homes strategically to attract offers in this competitive market. It is expected that prices may rise in the future due to the low inventory of available properties.
ALSO READ: Colorado housing market forecast & trends
Are Denver Home Prices Dropping?
The Denver Metro Association of REALTORS® (DMAR) published its January 2023 Market Report. Metropolitan Statistical Area (MSA) reports show housing market statistics that focus on the Denver metro region with a relatively high population density at its core and close economic ties throughout the area. It includes Greater Denver Metro Area Counties: Adams, Arapahoe, Boulder, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park. Here are the numbers for July 2022 compared with July 2021.
The Denver housing market has broken records in January 2023, with the highest average close price for both residential and detached properties. The average close price for residential properties was $626,311, while the average close price for detached properties was $702,289. These figures represent a significant increase from the previous year's record highs of $609,056 and $688,895, respectively.
However, the number of new listings in January 2023 decreased significantly, with 2,858 new residential listings, which represents the lowest number on record. In comparison, the previous record low was in 2022 with 3,485 new listings. There were also record-low numbers of new detached listings, with 1,950 new listings, and attached listings, with 908 new listings. The previous record low for detached listings was 2,376 in 2022, while the previous record low for attached listings was in 2008 with 910.
Despite the low number of new listings, the number of closed detached properties in January 2023 was 1,428, which is the highest number on record. The previous record low for closed detached properties was 1,489 in 2011. The low number of new listings and the high average close prices suggest that the demand for housing in Denver remains high, while the supply of available properties continues to shrink. This trend is likely due to the city's growing population and the limited amount of available land for new construction.
In conclusion, the Denver housing market has broken records in January 2023, with the highest average close price for both residential and detached properties. However, the low number of new listings suggests that the supply of available properties remains low, which could lead to further price increases in the future.
As of February 19, 2022, the average rent for a 1-bedroom apartment in Denver, CO is $1,769. This is a 3% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Denver increased by 1% to $1,390. The average rent for a 1-bedroom apartment increased by 2% to $1,769, and the average rent for a 2-bedroom apartment remained flat.
- The average rent for a two-bedroom apartment in Denver is $2,320, a 5 percent rise over the previous year.
- The average rent for a three-bedroom apartment in Denver is $2,780, a 3 percent rise over the previous year.
- The average rent for a four-bedroom apartment in Denver is $2,920, a 2 percent rise over the previous year.
Denver Housing Market Forecast 2023
The Denver real estate market predictions for 2023. Denver has a track record of being one of the best long-term real estate investments in the U.S. Denver's strong economy gives buyers the ability to spend more on housing, consequently increasing real estate prices. Home values rose so much over the past six or seven years that affordability became an issue for a person earning the median income in this area.
According to DMAR, 2023 will be difficult for the Denver housing market. Buyers and sellers will assess uncertainty when deciding whether to buy or sell. Expect difficulties throughout the first half of the year as the economy recovers. Housing should stabilize in the second half of economic conditions moderate.
Inventory fluctuations indicate market direction. Many homeowners who want to sell struggle with giving up their low mortgage rate for a much higher one. 85% of mortgages are under 5%. “Must move” vendors will reduce inventory. Low inventory slows property value declines.
In the second half of 2022, closed transactions plummeted. 2023 should follow this pattern. Eight to 13 percent fewer closed deals in 2023 compared to 2022 will lower real estate activity.
Yes, that's a substantial drop and will challenge everyone in the real estate industry. NAR forecasts 7% fewer closings. Mortgage rates remain an issue. Payment shock and affordability concerns for purchasers sparked market cooling in 2022. Rates remained variable at 6.4 percent in 2022. I'm not a mortgage professional, but most experts I've spoken with expect rates to stabilize in the second half of the year at five to 5.5 percent. Good news.
Will Denver home values fall in 2023? Prices will decline, but less than expected. Prices will drop 4–6%. They are expected a comeback by 2024 after a bad first half. NAR estimates a 1% price hike nationwide. NAR expects the smallest-gaining markets to lead in 2023. Unfortunately, Metro Denver was often one of the top-performing markets in the nation and will likely not be this year. However, lower sales should lower prices. Since it will take longer to sell and buyers will use their newfound leverage, client expectations must be managed.
NeighborhoodScout.com's data shows that in the past 10 years Denver real estate appreciated by nearly 146.94%. This amounts to an annual real estate appreciation of 9.46%, which puts Denver in the top 10% nationally for real estate appreciation. Let us look at the home price appreciation trends recorded by Zillow over the past year.
Zillow Home Value Index — The typical home value of homes in the Denver-Aurora-Lakewood Metro is currently $570,262. It indicates that 50 percent of all housing stock in the area is worth more than $570,262 and 50 percent is worth less (adjusting for seasonal fluctuations). Denver home values have gone up 2.5% in the last twelve months. Zillow forecasts that Denver home values are expected to decline by 2.2% between Nov 2022 to Nov 2023.
- Typical Home Values: $618,385 (January 31, 2023)
- 1-year Value Change: +2.5%
- 1-year Market Forecast: -2.1%
- 21.3% Percent of sales over list price
- 55.0% Percent of sales under list price
In conclusion, we can say that these numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? In a balanced real estate market, it would take about six months for the supply to dwindle to zero. In terms of months of supply, Denver can become a buyer's real estate market if the supply increases to more than six months of inventory. Months Supply of Inventory in the metro Denver housing market is still low as compared to a glut of buyers. However, it is shifting towards a more balanced housing market in 2023. Nationally, the houisng market is also cooling off from its pandemic-induced peak.
Is Denver a Good Place to Invest in Real Estate?
Should you consider Denver real estate investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2023. Denver is ranked as the country's 16th-most walkable city, with 600,158 residents. It has some public transportation and is very bikeable. Downtown is the most walkable neighborhood in Denver with a Walk Score of 93.
As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached are the most common housing units in Denver. Other types of housing that are prevalent in Denver include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 40-45% of Denver's housing units.
Denver ranked 13th for overall real estate investment and development, according to some 3,000 industry professionals surveyed and interviewed by the Urban Land Institute and PwC. Survey respondents viewed Denver's housing market even more favorably, collectively ranking it ninth overall.
Of greater importance to real estate investors in Denver is that the area is growing in population. The jobs are increasing and so are the number of renters. It is the largest and capital city of Colorado, home to roughly 700,000 people. The Denver metropolitan area is home to around 2.7 million people. The population has increased by 1.33% since 2019. The Denver-Aurora, Colorado statistical area is home to about three and a half million people.
It has a low unemployment rate of 3% unchanged from 3.30 last month and down from 6.70% one year ago, according to the U.S. Bureau of Labor Statistics. A third of the population of the Denver metro area rents. All these are excellent signs of investors looking to buy a rental property in Denver. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market.
Shortage of housing for a growing population, a strong economy & increasing jobs have been fueling the demand in the Denver housing market for the past many years. Denver is a key trade point for the country, and home to several large corporations in the central United States. It was named 6th on Forbes Magazine’s “Best Places for Business and Careers.” Denver South is home to 7 Fortune 500 companies. It is also home to mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy.
Let’s take a look at the number of positive things going on in the Denver real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the Denver housing market next.
How Was the Housing Market in Denver Last Year?
Two halves define 2022. According to DMAR's year-end report, low inventory drove the fast-paced housing market to record prices in the first half of the year. As economic conditions worsened in the second half of the year, many homebuyers reconsidered or delayed their purchase. Housing was decent in 2022.
Supply and demand determine market values. 1,184 active postings began in 2022. February had 1,226. Monthly new listings affect inventory levels. 2022 saw 60,164 new listings, 9.3% fewer than in 2021. New listings fell in 2022. Like new listings, closed transactions fell from 2021's record 64,105. 50,743 closings were 20.84% lower than last year.
Why are fewer homeowners selling? Most homeowners refinanced below 5%. The homeowner suffers in a higher mortgage rate environment. If you sell with a 3.5 percent mortgage, the new mortgage on the replacement house may be over six percent. The extra cost will burden homeowners. Months of inventory is another market indicator. MOI analyses supply and demand for active and closed listings.
A low MOI indicates a tight supply and gives sellers the advantage. This has been the Denver housing market since 2012. 2022 averaged 1.26 MOI. The lowest MOI was 0.56 in 2021. January's 0.42 MOI compares considerably with December's 1.75 MOI. Balance? Does the four-to-five-month balanced market criterion still apply? Buyers have the upper hand due to historically low inventory. Two-to-2.5 months may be the new standard. Does balancing feel like this?
Freddie Mac's primary mortgage market survey reported a 2.96 percent 30-year fixed rate in 2021. We finished 2022 at 6.42 percent, up 3.46 points in 12 months, reaching 7.08 percent in October and November. Higher rates induced buyer payment shock and slowed activity. 2022 indicates a market in transition from highs to lows. The average closing price reached a record $721,767 in April but dipped to $637,852 in December.
The median closing price was $616,500 in April and $554,990 in December. In 2022, the median closing price was $588,000, up 12% from last year. MLS days set new lows. MLS averaged eight days in April, but 43 days in December. February through May had MLS median days of four, and December had 30. Despite the feeling, 2022's Denver housing market was good.
Is Denver a Good Market For Rental Property Investment?
A third of the Denver metro area rents. Since housing inventory is scarce, prices are going up much faster than wages, and the younger population is more comfortable renting than owning, the Denver housing market is seeing a rapid rise in its rental market. The sheer demand for housing stock is making it profitable to break up large homes into multiple apartments.
Denver remains more expensive than other Colorado cities, including Fort Collins and Colorado Springs, and other major metro areas such as Phoenix and Charlotte, but considerably below California-based rent leaders and more. If Forbes could recommend this as a Denver real estate market investment strategy in 2016, it can be seriously considered today.
They said that any single-family home in the Denver housing market could be considered a good rental property due to the rapid rise in home prices. Denver Has A Large Student Population For Rental Homes. The college market presents a unique opportunity for landlords. There is a constant stream of people who will only rent unless they choose to stay after graduation. They may rent a while longer before feeling secure enough to buy a house.
Buying investment real estate in a college town is high risk. After all, when a college like Evergreen State scares off students or simply fails to attract them like many classics, private liberal arts schools that found themselves rendered redundant after brand-name schools opened their doors, there’s less demand for the rental of the house as a permanent residence.
You don’t have that problem in Denver since there are so many colleges in the Denver area. Schools range from the massive community college network to the 400-student Bel-Rea Institute of Animal Technology. American Sentinel University in Aurora is home to 2600 students, while the Metropolitan State College of Denver has more than 20,000 students.
The Colorado School of Healing Arts has only 100 students, while Colorado Christian University has more than 7000. Yes, the Denver real estate market for those who want to cater to students is diverse. You could invest in rental real estate near any of these colleges, knowing you could rent or sell to people that simply want to live in the area if student demand slacks off.
Denver Rent Prices Are Going Up
Dense urban areas are seeing weaker rental prices and drops in average rents, while some suburban sunbelt areas project small increases in rents. The main reason is working people relocating to less expensive and less dense areas. The August 2022 Rent Report from Apartment List reveals that Denver rents increased over the past month.
Denver rents have increased 0.8% over the past month, and are up sharply by 8.8% in comparison to the same time last year. Currently, median rents in Denver stand at $1,443 for a one-bedroom apartment and $1,785 for a two-bedroom. This is the sixth straight month that the city has seen rent increases after a decline in January. Denver's year-over-year rent growth lags the state average of 10.0%, as well as the national average of 12.3%.
Throughout the past year, rent increases have been occurring not just in the city of Denver, but across the entire metro. Of the largest 10 cities that we have data for in the Denver metro, all of them have seen prices rise. Here's a look at how rents compare across some of the largest cities in the metro.
- Englewood has seen the fastest rent growth in the metro, with a year-over-year increase of 13.8%.
- The median two-bedroom there costs $1,827, while a one-bedroom goes for $1,186.
- Parker has the most expensive rents of the largest cities in the Denver metro, with a two-bedroom median of $2,235; rents increased 1.3% over the past month and 10.6% over the past year.
- Aurora has the least expensive rents in the Denver metro, with a two-bedroom median of $1,695; rents grew 0.8% over the past month and 11.8% over the past year.
Compared to most other large cities across the country, Denver is less affordable for renters.
- Rents increased sharply in other cities across the state, with Colorado as a whole logging rent growth of 10.0% over the past year.
- For example, rents have grown by 12.8% in Fort Collins and 7.0% in Colorado Springs.
- Denver's median two-bedroom rent of $1,785 is above the national average of $1,358.
- Nationwide, rents have grown by 12.3% over the past year compared to the 8.8% rise in Denver.
- While Denver's rents rose sharply over the past year, many cities nationwide also saw increases, including San Diego (+17.6%), Charlotte (+17.2%), and Austin (+14.6%).
- Renters will generally find more expensive prices in Denver than most other large cities.
- For example, Charlotte has a median 2BR rent of $1,496.
The “Zumper Denver Metro Area Report” analyzed active listings last month across the metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Colorado one bedroom median rent was $1,531 last month. Boulder ranked as the most expensive cities with one bedrooms priced at $1,860 whereas Laramie was the most affordable city with one bedrooms priced at $790.
These cities look good for rental property investment this year as rents are growing over there.
The Fastest Growing Cities For Rents in the Denver Metro Area (Y/Y%)
- Laramie had the fastest growing rent, up 23.4% since this time last year.
- Englewood saw rent climb 21.2%, making it second.
- Boulder ranked as third with rent increasing 17.7%
The Fastest Growing Cities For Rents in the Denver Metro Area (M/M%)
- Denver had the largest monthly growth rate, up 5.5%.
- Wheat Ridge rent climbed 3.8% last month, making it the second fastest growing.
- Littleton was third with rent increasing 2.3%.
Overall Rent Prices in Denver Metro Area:
The average rent price for a one-bedroom apartment in the Denver Metro Area is approximately $1,600 per month. For a two-bedroom apartment, the average rent price is around $2,100 per month. However, rent prices can vary significantly based on location, apartment size, and amenities.
Rent Prices by Neighborhood:
The rent prices in Denver Metro Area vary significantly depending on the neighborhood. Some of the most expensive neighborhoods in the area include Cherry Creek, Capitol Hill, and LoDo, where the average rent for a one-bedroom apartment ranges from $2,000 to $2,500 per month. On the other hand, neighborhoods such as Montbello, Gateway-Green Valley Ranch, and Aurora offer more affordable rent options, with the average rent for a one-bedroom apartment ranging from $1,100 to $1,400 per month.
Rent Prices by Apartment Type:
The type of apartment also affects the rent prices in the Denver Metro Area. Luxury apartments typically come with more amenities, such as swimming pools, fitness centers, and 24-hour concierge services. As a result, the average rent for a luxury one-bedroom apartment is approximately $2,500 per month. On the other hand, standard apartments with fewer amenities are more affordable, with an average rent for a one-bedroom apartment ranging from $1,200 to $1,500 per month.
Rent Prices by Season:
Rent prices in Denver Metro Area can fluctuate depending on the season. Summer months tend to be more expensive due to high demand, with rent prices increasing by up to 10% compared to the winter months. The demand for rental properties in Denver also spikes during May and June, as many college graduates move to the area for job opportunities.
In summary, rent prices in the Denver Metro Area are relatively high, with significant variation depending on the neighborhood, apartment type, and season. Renters looking for more affordable options may consider neighborhoods such as Montbello, Gateway-Green Valley Ranch, and Aurora. However, renters should be aware that the rental market in Denver can be competitive, and prices can change quickly, making it essential to stay informed and plan accordingly.
Denver Is Relatively Landlord-Friendly
Colorado is relatively landlord-friendly; compare it to the West coast, and it is a landlord’s dream. You don’t have to give tenants notice that you’re entering a property. You can quickly begin evictions if they haven’t paid the rent. That protects your investment in the Denver housing market. There’s no limit on late fees.
There are no state laws that prevent you from rekeying the locks after evicting them. If they violate the lease, give them formal notice. The tenants then have 72 hours to correct the issue or move out. If they don’t comply with notices, then you can go to court. If the court agrees with you, the sheriff gives the tenants 48 hours to move out before forcing them out.
Denver's Limited Room to Grow Keeps Housing Supply Tight
Many of the fastest-growing markets in the US are along the Front Range, a part of the Southern Rocky Mountains. While there are houses in the hills, it is a lot harder to build on the mountainous landscape than on flat plains. In Denver’s case, the massive national forests and Rocky Mountain Park to the west of Denver and its suburbs prevent the expansion of the Denver housing market in that direction. This keeps home prices higher than they’d be in places like Dallas.
The residential median home price in Denver hovers around $530K. That’s a steal for the migrants from California, but the sheer numbers of them coming in is pricing locals out of the housing market. The median monthly rent here – and that includes one-bedroom apartments – is around $1100 a month. Note that you could get much more for a spacious single-family home for rent or a large condo. With a 3 bedroom detached single-family home, you could receive well over $2000 per month in rent. You’ll find strong ROI numbers for the Denver real estate market.
Denver's Quality of Life
We can joke about the people who moved to Colorado decades ago, inspired by the movie “Rocky Mountain High”. We’re not going to joke about the overhyped medical marijuana industry there today. U.S. News & World Report published its list of the “150 Best Places to Live in the U.S.,” and four of the top five cities are right here in Colorado: Boulder (1), Denver (2), Colorado Springs (4), and Fort Collins (5). Denver was the second-best city to live on that list.
The area was a little lower in value than many like, but it ranked high on jobs, quality of life, and desirability. It is a beautiful city to live near the mountains – located on the western edge of the exquisitely beautiful High Plains. It is exactly one mile high above sea level and has the largest city park system in the nation, with 14,000 acres of mountain parks and 2,500 acres of natural areas.
That isn’t enough on its own to draw huge numbers of people to the Denver real estate market, but it is a factor. It has become the 19th most populous city in the nation. The metro area population of Denver (as of 2020) is 2,827,000, a 1.33% increase from 2019 (Macrotrends.net).
Denver was ranked as a Beta world city by the Globalization and World Cities Research Network. It has been one of the fastest-growing major cities in the United States, and real estate investments provide a direct way to participate in the strong growth of these economies. The strength of the overall economy significantly impacts the real estate market.
Denver's Strong Economy & Jobs Boost Its Housing Market
Job growth directly affects the real estate market. Demand for all types of real estate increases with the number of local jobs, as during periods of economic development or boom. Jobs are a major reason why people move to Denver in the first place. Denver’s unemployment rate has been well below the national average for years.
The BLS reported that the unemployment rate for Denver rose 0.1 percentage points in September 2022 to 3.3%. For the same month, the metro unemployment rate was 0.1 percentage points lower than the Colorado rate. The unemployment rate in Denver peaked in May 2020 at 12.6% and is now 9.3 percentage points lower. From a post-peak low of 3.2% in August 2022, the unemployment rate has now grown by 0.1 percentage points
Forbes ranked Denver as the number one Best Place for Business and Careers in 2015. Additionally, the magazine placed Denver 16th for employment growth and 20th for education. When one considers the huge oil and government sectors, as well as the rapidly expanding aerospace and technology businesses, it's no surprise that Denver is seeing such a big job boom.
The National Renewable Energy Laboratory contracts for research and development while companies such as Halliburton profit from a profitable oil play. Aerospace and technology positions are available at Ball Aerospace, Raytheon, and Lockheed-Martin, whilst software engineers are in demand at Rocket Software, StorageTek, and Sun Microsystems.
That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. Due to its proximity to the mineral-rich Rocky Mountains, Denver has long been a home for mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy. The top 25 employers in Metro Denver include government and municipal organizations, and corporations.
Denver Technological Center, better known as The Denver Tech Center or DTC, is a business and economic trading center located in Colorado in the southeastern portion of the Denver Metropolitan Area, within portions of the cities of Denver and Greenwood Village. It is home to several major businesses and corporations.
The U.S. Government is the largest employer in Metro Denver. The Department of the Interior includes such agencies as the Bureau of Land Management, Office of Surface Mining and Reclamation, and Bureau of Reclamation, and all have offices in or near the Denver Metro area. Another top employer in the Denver Metro Area is the State of Colorado.
It employs nearly 30,000 people in the Denver Metro area. As the capital and largest city in the state, Denver hosts the State of Colorado in multiple locations. Centura Health is one of the top 25 employers in the metro Denver area. Its massive healthcare network includes 15 hospitals, eight affiliate hospitals, health neighborhoods, health at home, urgent care centers, emergency centers, mountain clinics, 100-plus physician practices, clinics, and Flight for Life Colorado.
Denver is well known for its proximity to the Rockies. Other attractions in the area include but are not limited to the Denver Zoo and the Denver Botanic Gardens. Many of those 30 million tourists would love to have rented a house or apartment for their visit instead of a hotel. Then there’s the business traveler. Denver hosts around 80 conventions a year, too.
Whether someone is staying for a week for a convention or working a contract job in the tourism industry, this drives demand for short-term rentals that can be incredibly profitable. Renting on sites like Airbnb is legal if you have a business license, though around half of the Airbnb rentals are thought to be violating that rule. Denver is particularly progressive in allowing people to rent out their homes and apartments on Airbnb, though landlords may not agree with it.
Known Areas of Redevelopment
You don’t want to invest in the Denver housing market and end up losing money because the neighborhood is going downhill. Conversely, areas slated for redevelopment will almost certainly go up. And Denver has known and planned for areas of redevelopment. Downtown Denver saw multiple infill projects downtown ten years ago. Redevelopment is planned around Elitch Gardens today.
Key trade point for the country – Denver is home to several large corporations in the central United States. Denver South is home to 7 Fortune 500 companies. Denver was named 6th on Forbes Magazine’s “Best Places for Business and Careers.” Home for mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy.
Denver's Demographic Momentum
At first glance, the average age of 36 for residents versus 40 for the national average doesn’t sound too promising. However, this long-established city has already been noted as a great place to retire. That pulls the average age up. The coolness factor and job market attract equal numbers of young adults. That is why Millennials make up about 22% of Denver’s population. And given the job market and quality of life, they’ll probably stay here to raise families, generating more demand for the Denver housing market.
Generation X made that decision, too, which is why roughly a quarter of residents are under the age of 20. Additions to the local labor force tend to drive rents and prices up on properties in the vicinity and result in the local construction of homes and apartments. That will propel the Denver real estate market for decades to come.
Denver Colorado Real Estate Investment Markets
Investing in Denver's real estate can be a worthy investment due to a steady rate of appreciation. There are many reasons why the Denver real estate market is going strong today and is certain to remain strong for years to come. You cannot afford to miss out on this growing and appreciating real estate market. Good cash flow from Denver investment properties means the investment is, needless to say, profitable.
On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding a good Denver real estate investment opportunity would be key to your success. Even as Denver home prices have reached new heights, the market remains attractive to residential real estate investors in the $300,000 to $399,000 price range. As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain.
The homebuyers won’t be able to outbid real estate investors and would end up renting. The high prices combined with the lack of higher gains have slowed down fixing and flipping investment properties in Denver. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to Denver and want to purchase property to rent out. The three most important factors when buying real estate anywhere are location, location, and location.
The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Denver investment property and you should be able to flip it for a lump sum profit. The neighborhoods in Denver must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls.
Some of the popular neighborhoods for buying a house or an investment property in Denver are Jefferson Park, Berkeley, Park Hill, Cheesman Park, Congress Park, Hilltop, Sunnyside, Capitol Hill, Highland, Platte Park, Stapleton, Reunion, Cherry Creek, Aspen, and Washington Park.
Denver housing prices are not only among the most expensive in Colorado but they are also some of the most expensive in all of the United States. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. As with any real estate purchase, act wisely. Evaluate the specifics of the Denver housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Denver.
The inventory is low, but opportunities are there. According to Realtor.com, there are 69 neighborhoods in Denver, where properties are available for sale. If you think of investing in Denver, you have decided on a long-term investment property. Here are the ten neighborhoods in Denver having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
- Victory Crossing
- Stapleton South
- Stapleton East
- Stapleton North
- Stapleton Southeast
- City Center
- W 14th Ave / Quitman St
Colorado Springs is another sizzling hot market for real estate investment in 2020. The Colorado Springs real estate market contains several large populations of renters, many practical reasons for people to move here from the surrounding area and across the country, and long-term factors that will drive growth for years to come. Forget the Mile High City and invest in the Colorado Springs real estate market.
Aurora is a fairly large city on the east side of Denver. Its proximity to Denver has long kept it in the realm of the Denver suburb. The Aurora real estate market 2020 is seeing rising prices & rents. Aurora, Colorado is more than a growing suburb. It is a large, thriving city in its own right. It has a bright future, and it is poised for rapid appreciation and increasing rental rates. This is a good time to invest in the Aurora real estate market.
Boulder real estate market is another good place to buy investment properties. Boulder is located in northern Colorado. 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.
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 has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Denver, Colorado.
Consult with one of the investment counselors who can help build you a custom portfolio of Denver turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Denver. Not just limited to Denver or Colorado but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Denver turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
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This article shouldn't be used to make real estate or financial decisions. Some of this article's information came from referenced websites. Norada Real Estate Investments provides no express or implied claims, warranties, or guarantees that the material is accurate, reliable, or current. All information should be validated using the below references. Norada Real Estate Investments does not predict the future US housing market. This post educated investors on Denver real estate. Buying a rental property needs research, planning, and budgeting. Not all investments are good. Always do research and consult a real estate investment counselor.
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