The population of Denver grew by almost 20% between 2010 and 2020, an increase of over 115,000 residents!
We’ll take a look at buying a home in Denver before they’re all snatched up. We’ll also delve into how much it costs to buy a home in this beautiful city.
If Denver piques your interest, keep reading so that you can make an informed decision.
Property Economics in Denver
Denver housing prices were up 12.7 percent year on year in June 2022, with a median price of $621K. That’s a value for California migrants, but the sheer volume of them is pricing locals out of the housing market.
The median home price in Denver as of June 2022 is as follows; $615,000 for a residential home, $673,873 for a detached home, and $430,000 for an attached home.
In May 2021, the average home value in Denver was roughly $523,000. Over the last year, home values have increased by 23.6 percent.
Denver is currently a seller’s market, which shows that demand outnumbers supply, providing sellers a price bargaining advantage over buyers. There are fewer available properties than there are active buyers in the market.
The median monthly rent in this area, which includes one-bedroom units, is roughly $1,100. It’s worth noting that you could earn a lot more for a large single-family home or a large condo.
Rent for a three-bedroom detached single-family home might be well above $2,000 per month. The Denver housing market in 2022 has a high return on investment.
In real estate, buying your first property is typically about getting your foot in the door. Despite the fact that single-family houses have grown even more desirable among a pandemic-weary populace looking for versatile areas to sleep, play, and work, many first-time buyers in the Denver metro area have been priced out.
That’s where townhomes or condominiums come in, with an average sale price of $495,000 in Denver.
Changing Denver Landscape
Nobody can deny that the Denver real estate market has shifted substantially in the previous decade. Consider this extreme example: in 2011, the median sale price of a home in Metro Denver was $232,000. In 2022, the median sales price has risen to $599,742.
Denver home values have increased by 22.8 percent in the last year (current value = $652,170) and will continue to climb in the coming year due to a supply-demand mismatch.
The typical price of a single-family home in Denver County increased by 14.6 percent (or $84,000) between January and February, rising from $575,000 to $659,000, a more significant gain than in the entire year of 2016.
Furthermore, Denver County homes began selling for 106.3 percent above the asking price, breaking a month-over-month record.
The second change is that conforming loan limits in the Denver metro area have been raised to $684,250. This exceeds the appropriate national conforming limits by $37,050. This means that the majority of buyers may buy a $750,000 home with a 10% down payment without taking out a big loan.
Forecasts for the coming year, however, differ. Some say that already high prices and rising mortgage rates will price many purchasers out of the market, while others anticipate that limited supply will fuel another year of double-digit price increases.
These indicators provide a macro view of rising rental demand. Each real estate market has its own distinct supply-demand dynamics, as well as distinct communities that give unique opportunities for investors.
Buy a Home in Denver
Denver is conveniently located 15 miles from the foothills of the Rocky Mountains as well as world-class ski resort towns. Denver’s gorgeous mountains, mild temperature, vibrant culture, and four seasons of outdoor leisure continue to make it a fantastic city for residents.
The Mile High Municipal, which sits at an elevation of 5,280 feet, has over 200 city parks distributed across the city, producing over 100 miles of pathways, 11 dog parks, and 5,000 acres of urban parkland. In addition, the city of Denver maintains 85 miles of easily accessible paved bike/run trails to promote eco-friendly commuting and healthy, active lifestyles.
Best Area to Buy Houses in Denver
The inventory is limited, but there are opportunities. According to Realtor.com, there are 69 communities that have houses in Denver for sale. If you are considering investing in Denver, you have chosen a long-term investment property.
Finding expanding markets is the best way to identify the finest place to buy a rental property.
Longmont
Longmont is an excellent place to live and play, offering a variety of housing options at cheaper house prices than adjacent Boulder, as well as a plethora of recreational opportunities, cultural attractions, and exciting events. The city values its excellent view of Longs Peak and its one-of-a-kind Front Range landscape (which Longmont was named for).
Longmont’s population has nearly doubled in the previous two decades, making it the 13th largest city in Colorado. With the increase in population, the city has revitalized its magnificent historic downtown, which has been classified as an official Colorado creative area.
Lakewood
Lakewood is gradually becoming one of the most appealing cities in the country for inhabitants of all ages. Lakewood, in fact, was one of ten communities in the country to receive the 2016 All-America Cities Award.
With close access to both Denver and the Rocky Mountains, there’s always something new to discover, both indoors and out. Lakewood has a solid economy and plenty of work prospects for new residents, with almost 75,000 positions across all economic areas, including government, education, and health care.
The unemployment rate is 6% lower than the national average, and the average family income is 5% higher.
Capitol Hill
Capitol Hill is also one of the more affordable Downtown Denver neighborhoods, making it ideal for young professionals. Around 80% of residents rent their homes in this densely populated urban area.
This Denver area has been described as soulful, lively, and gritty, with a mix of old and hip. It is home to independent bookstores, retro diners, late-night pizza joints, and an electronic music venue. Capitol Hill also features a range of newly constructed apartments, reconditioned condos, and rebuilt lofts.
Five Points
Five Points is located in Denver County and is considered to be one of the most excellent places to live in Colorado. Living in Five Points provides inhabitants with an urban vibe, and the majority of residents rent their houses.
There are numerous bars, restaurants, coffee shops, and parks at Five Points. Many young professionals and liberal residents make this area home.
It is a thriving multicultural neighborhood with hip food and nightlife. Welton Street is lined with soul-food restaurants, relaxing cafes, and bustling bars, as well as the Roxy Theatre and Cervantes’ Masterpiece Ballroom.
Platt Park
Platt Park is one of Denver’s most desirable neighborhoods due to its abundance of pedestrian restaurants and shopping, as well as its closeness to Washington Park.
Because of the vast diversity of residences and pricing, the area has grown in popularity and growth in recent years, making it an attractive alternative to Wash Park. Original 1920s bungalows and modern townhomes line the streets, adding to the neighborhood’s charm.
Pearl Street, a 7-block commercial district, is home to some of the top restaurants in town.
Congress Park
Congress Park has quickly become one of Denver’s most desirable urban neighborhoods. Before it was integrated into Denver in 1889, the neighborhood was once known as Capital Heights and known as a streetcar suburb.
The Congress Park area comprises a significant portion of Denver’s largest historic district, the East 7th Avenue Parkway. The parkway, which was built in 1912 during the City Beautiful movement, is home to some of Denver’s most opulent homes, including Denver Squares, bungalows, and Victorians to the south and north of the parkway.
Why Denver?
The Mile High City, as its affectionately known, is the best choice for people looking for exciting activities, beautiful weather, and the most fantastic scenery. Denver combines the benefits of country living with the convenience of big city living at a more affordable price than major metro areas. If you want clean air, amazing views, good food, and cosmopolitan fun, Denver is the city for you.
Rents in these cities are rising, making them attractive for rental property investment this year. Although these figures are more dramatic in metro Denver, robust demand outnumbers available inventory throughout the Colorado home market.
The Denver home market, as well as the whole Colorado housing market, is a hotspot for buying and selling real estate. Home prices have risen in most areas of the state as a result of the increased demand for housing.
For what feels like the first time in a long time, the home market is moving in favor of the buyer. Buying a home may be the best option for you if you want to settle down, raise a family, and be a part of a community.
Move to a Place that Moves You
Denver is an excellent place to buy a home and you now have all the info you need to purchase your dream house in the Rockies.
The next step is moving in, and we can make that a Rocky Mountain breeze for you; just contact us for a free quote, and we’ll have you in your new home in no time.