Denver Housing Market: Prices, Trends, Forecast 2022-2023 (2023)

Is Denver Housing Market Cooling Off?

Is the Denver housing market moving in favor of buyers in 2022? As the Denver Metro Housing Market continues to evolve, this blog will keep you up-to-date. The market stats for September indicate that the Denver housing market is no longer in flux. The real estate market has become more balanced, according to DMAR.

The Denver housing market is shifting toa balanced market. Home prices will either remain stable or fall. As economic uncertainty keeps some buyers at home, the market is becoming more balanced. All significant statistical indicators point to a market slowdown in the Denver area. A market with three to six months of inventory is considered balanced. A market with more than six months of inventory is considered a buyer's market.

Currently, the $100,000 to $199,999 and $1 million and above segments for detached homes are nearing the 3 months threshold, with 2.75 and 2.62 months, respectively. Attached homes priced at $1 million or more have 2.83 months of inventory. Using months of inventory as a metric indicates that the Denver metropolitan area is approaching towards a balanced real estate market.

Buyers can now find the proper house and negotiate the purchase price, inspection-related fixes, and appraisal values. Some purchasers are adjusting to increasing borrowing rates and using market tools. Active listings at month's end (September) grew 10.72 percent to 7,683. Pending sales for detached and attached homes fell 15.41% month-over-month, resulting in a 6.38% sales volume fall.

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According to DMAR's Luxury Market Report (properties sold for $1 million or greater) now has the highest months of inventory for any part of the Denver market, with 2.73 months of homes for sale. Luxury homebuyers have more time to decide. Both detached and attached markets experienced an increase in average MLS days from August, 31.82 percent for detached and 40% for attached. Pending sales for detached houses dropped 16.35% in September and 8.33% for attached. Close-price-to-list-price ratios fell below 100% again this month, to 98.21% for detached and 99.30% for attached.

Are Denver Home Prices Dropping in 2022?

Denver Housing Market's Quarterly House Price Appreciation: The FHFA House Price Index (FHFA HPI®) is an indicator of typical house price inflation in the United States. It is a broad measure of the movement of single-family house prices at various geographic levels. It indicates that home prices increased by 21.6 percent in the Denver-Aurora-Lakewood Metropolitan Statistical Area over the past year. Prices also rose 7.5 percent over the last quarter (as of 2022 Q1).

The Denver Metro Association of REALTORS® (DMAR) published its September Market Trends Report which demonstrated that the home price rise last month represents the highest September on record. Denver's real estate market is expected to operate in a more balanced way than it did at the beginning of the year.

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.

Median Home Price in Denver 2022

  • (Residential) $580,000 represents the highest September on record. The previous record was 2021 at $530,000.
  • (Detached) $632,000 represents the highest September on record. The previous record was 2021 at $576,000.
  • (Attached) $410,000 represents the highest September on record. The previous record was 2021 at $380,000.

Average Home Price in Denver 2022

  • (Residential) $671,024 represents the highest September on record. The previous record high was 2021 at $618,977.
  • (Detached) $745,947 represents the highest September on record. The previous record high was 2021 at $690,541.
  • (Attached) $486,773 represents the highest September on record. The previous record high was 2021 at $443,847.

As of October 05, 2022, the average rent for a 1-bedroom apartment in Denver, CO is $1,725. This is a 0% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Denver decreased by -2% to $1,455. The average rent for a 1-bedroom apartment increased by 2% to $1,725, and the average rent for a 2-bedroom apartment decreased by -2% to $2,295.

  • The average rent for a two-bedroom apartment in Denver is $2,295, a 4 percent rise over the previous year.
  • The average rent for a three-bedroom apartment in Denver is $2,800, a 7 percent rise over the previous year.
  • The average rent for a four-bedroom apartment in Denver is $3,000, a 3 percent rise over the previous year.
Denver Housing Market: Prices, Trends, Forecast 2022-2023 (1)

Denver Market Trends Showing Month-Over-Month %Change

Denver Housing Market: Prices, Trends, Forecast 2022-2023 (2)

Denver Housing Market Forecast 2022 and 2023

The Denver real estate market predictions for 2022 & 2023.Interest rates remained low and buyer demand remained consistently high throughout 2021. According to DMAR, more homes were purchased last year, totaling 63,684, than in any previous year. While demand was at an all-time high, new listings on the market fell 5.26 percent throughout the year.

At the start of January 2022, the Denver Metro area had only 1,477 active properties on the market, which is 11,175 fewer than normal. Due to sustained demand for housing and a lack of inventory, the market is expected to experience double-digit appreciation in 2022. It will be the first time since 2015-2016 and 1998-2000 when Denver saw back-to-back years of double-digit appreciation.

Denver has a track record of being one of the best long-term real estate investments in the U.S. Let us look at the home price appreciation trends recorded by Zillow over the past few years. 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. But in 2019, it experienced a cooling trend where home values appreciated by a mere 1%. The year ended with an average home price of $486,695 and a median of $420,000. This was up less than three percent from 2018, but up almost 90 percent from 2010.

Since the last decade (September 2012), the Denver-Aurora-Lakewood Metrohome values have appreciated by nearly 160% — Zillow Home Value Index. The typical home value of homes in the Denver metro is currently $629,632. It indicates that 50 percent of all housing stock in the area is worth more than $629,632 and 50 percent is worth less (adjusting for seasonal fluctuations).

In Aug 2021, the typical value of homes in Denver City was around $553,000. Home values have gone up 13.7% since then. Denver is currently a moderate seller's real estate market.

Similar growth has been recorded by NeighborhoodScout.com as their data also 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.

Here is the latest housing forecast for the Denver MSA. Denver could become a buyer’s market by mid-2023. It is now a neutral market with prices getting softer. The second half of the year is seeing a return to normalization. Higher interest rates are already translating to more inventory, lower or flat prices, and longer days in the MLS.

  • Denver-Aurora-Lakewood Metro home values have gone up 13.7% over the past year.
  • Zillow forecasts that Denver home values are expected to rise by 0.5% between August 2022 to August 2023.
  • Denver home values have gone up 13.8% over the past year.
  • Aurora home values have gone up 13.9% over the past year.
  • Lakewood home values have gone up 11.9% over the past year.
  • The typical value of homes in Colorado (statewide) is currently holding at $580,275.
  • Colorado home values have gone up 14.7%over the past year and will continue to rise in the next twelve months.
Denver Housing Market: Prices, Trends, Forecast 2022-2023 (3)

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? Denver Metro Area is still a seller’s market across the board but the historically low mortgage interest rates did help buyers as far as housing affordability is concerned.

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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 2022 & 2023.

Nationally, the houisng market is also cooling off from its pandemic-induced peak. The National Association of Realtors says home sales fell in June 2022, the fifth consecutive month of declining sales volumes. And while the national median home price in June hit $416,000 — yet another record — the pace of annual appreciation decelerated to 13 percent

Is Denver a Good Place to Invest in Real Estate in 2022?

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 2022 and 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 inDenverwith aWalk 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% from 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 numbers stood out most: low inventory and skyrocketing prices. The lack of supply, combined with strong demand, drove record price gains. In 2021, the Denver metro averaged $612,274, a 16.68 percent gain over 2020. Prices reached a new all-time high and represented the tenth consecutive year of upward growth. The previous high point for percentage growth occurred in 2000 when it reached 15.77 percent. Those that followed the median price rise saw a 16.67 percent increase in 2021, nearly equal to the change in the average closed price.

Months of inventory (or MOD) is another strong indicator of market direction because it takes both active and closed listings into account. MOI was 0.56 on an annual average basis in 2021. A new record low, surpassing 2020's MOI of 1.21. 2012 was the last year in which Denver averaged greater than 2.0 MOI. The traditional period of four to five months is no longer adequate in light of current trends. As we settle into the new normal, the present market is heavily skewed in favor of the house seller.

Based on the market's sustained demand for housing and a lack of inventory, the market is expected to appreciate by double digits in 2022, which it hasn't seen in back-to-back years since 2015-2016 and 1998-2000. According to DMAR, there are a few elements that will determine if house prices continue to accelerate. The first consideration is supply and demand. At the start of January 2022, there are 41.87 percent fewer residences on the market than there were in January 2021.

The second aspect is that conforming loan ceilings in the Denver metro area increased to $684,250. This is $37,050 more than the applicable national conforming limits. This indicates that the majority of purchasers may acquire a $750,000 property with a 10% down payment without incurring a large loan. However, forecasts for the next year are divided between those who believe that already high prices and rising mortgage rates will price many buyers out of the market and those who believe that limited supply will fuel another year of double-digit price growth.

The median price of a single-family home sold in December was $599,900, which was flat with November's median price and represents a 19.34% increase from last December. The average closing price was $705,753, a 0.25 percent increase from November and a 15.61 percent increase from the previous year. The attached and detached segments both had close-price-to-list-price ratio averages of 101.24 and 101.66 percent respectively. A high list-to-sell ratio indicates a healthy real estate market in which buyers and sellers negotiate less over the sales price.

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.

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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 one-bedroom go 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 14 metro cities to show the most and least expensive cities and cities with the fastest growing rents. The Colorado one bedroom median rent was $1,534 last month. Boulder ranked as the most expensive cities with one bedrooms priced at $1,830 whereas Laramie was the most affordable city with one bedrooms priced at $700.

The best place to buy rental property is about finding growing markets. Cities like Longmont & Lakewood are good for investors looking to get started with rental property ownership at an affordable price. These trends provide a macro look at the growing rental demand. Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present their own opportunities for investors.

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%)

  • Littleton had the fastest growing rent, up 28.3% since this time last year.
  • Fort Collins saw rent climb 25%, making it second.
  • Longmont ranked as third with rent increasing 24.6%.

The Fastest Growing Cities For Rents in the Denver Metro Area (M/M%)

  • Fort Collins had the largest monthly growth rate, up 6.3%.
  • Littleton rent climbed 6.2% last month, making it the second fastest growing.
  • Loveland was third with rent increasing 5.9%.
Denver Housing Market: Prices, Trends, Forecast 2022-2023 (4)

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 over-hyped 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 on 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.

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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.

In June 2022, Denver MSA had unemployment rate was 3.3%, lower than the national average of 3.7%. Over the past 25 months, Colorado has added 410,300 nonfarm payroll jobs, compared to losses totaling 374,500 in March and April 2020. That translates to a job recovery rate of 109.6 percent, which exceeds the U.S. rate of 96.3 percent.

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 asThe Denver Tech CenterorDTC, 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 health care network includes 15 hospitals, eight affiliate hospitals, health neighborhoods, health at home, urgent care centers, emergency centers, mountain clinics, 100 plus physician practices, and 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 with 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 yourDenver 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.

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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 byNeigborhoodscout.com.

  1. Victory Crossing
  2. Stapleton
  3. Stapleton South
  4. Stapleton East
  5. Stapleton North
  6. Stapleton Southeast
  7. CBD
  8. Ballpark
  9. City Center
  10. 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. . 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 INVESTMENTShas 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.

REFERENCES

Market Data, Reports & Forecasts
https://www.recolorado.com
https://www.dmarealtors.com
https://www.zillow.com/denver-co/home-values
https://www.littlebighomes.com/real-estate-denver.html
https://www.recolorado.com/market-statistics/market-watch.aspx
https://www.realtor.com/realestateandhomes-search/Denver_CO/overview
https://www.zumper.com/blog/rental-price-data/
https://www.zumper.com/blog/denver-metro-report/

Best Neighborhoods for real estate
https://www.neighborhoodscout.com/co/denver/real-estate

Foreclosures
https://www.realtytrac.com/statsandtrends/co/denver-county/denver

Quality of life, Unemployment, Rent, Tourism
https://realestate.usnews.com/places/colorado/denver
https://denverrelocationguide.com/largest-employers-in-denver
https://www.mashvisor.com/blog/why-where-invest-denver-real-estate
https://www.denverpost.com/2014/12/16/denver-experiencing-its-best-convention-year-ever

Landlord friendly
http://www.landlordstation.com/blog/top-landlord-friendly-states
https://www.avail.co/education/laws/colorado-landlord-tenant-law

Short term rentals
https://crej.com/news/airbnb-31-billion-gorilla-room
https://businessden.com/2018/08/27/50-of-airbnb-landlords-ignore-denver-rules-taxes-in-booming-100m-industry

Growing rental market
https://www.5280.com/2017/04/everything-know-denvers-real-estate-market-wrong
https://www.forbes.com/sites/ingowinzer/2016/07/31/should-you-invest-in-denver-area-real-estate/#16f926277fc5

Redevelopment
https://denverinfill.com/home-old.htm
https://www.denverpost.com/2018/03/06/river-mile-denver-elitch-gardens-redevelopment/

(Video) The WORST Housing Market In 40 YEARS | How Did This Happen And What Can You Do?

Colleges
https://www.collegesimply.com/colleges-near/colorado/denver

FAQs

Will home prices drop in 2023 Colorado? ›

However, sellers continue to list additional homes for sale, as if they are worried buyers will vanish. The good thing for the Colorado housing market is that home prices are not going down in 2022 and 2023. The average home price in Colorado is $694,989.

Will house prices fall in 2022 2023? ›

As economic conditions continue to impact the country, industry experts are suggesting there will be less demand in 2023 which will likely result in house prices falling.

Will US home prices drop in 2023? ›

Morgan Stanley expects U.S. home prices, as measured by the Case-Shiller Index, to fall another 4% in 2023. In total, the Wall Street bank expects home prices to fall around 10% between June 2022 and the bottom in 2024.

Will house prices go up 2023? ›

The most likely outcome for 2023 is that we see a fall in mortgage rates towards four per cent with a modest decline in house prices of up to five per cent. The labour market remains strong and the supply of homes for sale is below average creating a scarcity of homes for sale that will support pricing.”

Will 2023 be better to buy a home? ›

While there's a good chance housing inventory will increase in 2023, borrowing rates might follow suit, or otherwise hold steady at today's higher levels. Historically speaking, this isn't the highest mortgage rates have been. But compared to last year's rates, today's rates look very high.

Is 2023 a good time to buy a house? ›

Home Prices Will Likely Drop

Fannie Mae has forecasted that total home sales will reach 5.64 million in 2022, an 18.1% drop from 2021; in 2023, that figure is expected to decline again to 4.47 million, a 20.7% decrease from this year. As a result, Fannie Mae expects home prices to fall, but only by 1.5% nationwide.

What will happen to house prices in 2024? ›

However the OBR predicts there will still be an increase of 10.7% in house prices this year, followed by a decrease of 1.2% in 2023 and one of 5.7% in 2024. After this the OBR expects prices to rise again, by 1.2% in 2025, 3% in 2026 and 3.5% in 2027.

Will prices of homes drop in 2024? ›

A new report from Moody's Analytics forecasts that — given increased borrowing costs, elevated inflation, and a softening labour market — home prices will see a peak-to-trough decline of about 10% by early 2024.

What will happen to mortgage rates in 2023? ›

With the BOE base rate at 3% and the market now pricing in 2 year fixed mortgage rates to rise to around 6% by the end of 2023, you should seriously consider fixing your mortgage now if you are worried about how high interest rates might go and whether you can keep up your mortgage repayments.

Where will home prices drop the most? ›

Where are housing prices coming down the most?
  • Sacramento, California. ...
  • Denver, Colorado. ...
  • Phoenix, Arizona. ...
  • Oakland, California. ...
  • North Port, Florida. ...
  • Tacoma, Washington. ...
  • Higher interest rates. ...
  • Uncertainty. A home is a major financial purchase.
11 Oct 2022

Are house prices going to drop? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans. This would take house prices back to where they were last summer.

How long will mortgage rates stay high? ›

But the upshot for homebuyers is that mortgage rates are expected to come down next year, Fratantoni said. MBA is forecasting mortgage rates to end 2023 at around 5.4%. The average rate for a 30-year fixed rate mortgage is currently 6.94%, according to Freddie Mac.

Will house prices rise in next 5 years? ›

Many probably will. Into 2024 and 2025, research house Capital Economics is predicting a gradual rebound of house prices. We aren't likely to see the 'hockey stick' growth that was experienced during the pandemic years, but values are likely to creep up towards the end of the period.

What is the future of the housing market? ›

Housing Market Forecast 2022: Zillow

Zillow expects home value growth to slow considerably over the next year, from the current rate of 12.9% annual growth to 1.3% growth between Aug 2022 to Aug 2023. It also predicts home values to remain flat through the end of this year.

Will 2024 be a good time to buy a house? ›

Unlike the six-year housing downturn that started in 2006, Wells Fargo predicts this ongoing housing downturn should fizzle out heading into 2024. In fact, Wells Fargo predicts in 2024 that housing GDP will rise 5.1% while U.S. home prices rebound by 3.1%.

How high will interest rates go in 2023? ›

Based on the predictions published by the Federal Reserve, it is probable that the interest rates on the best high-yield online savings accounts will reach between 4.77% and 5.83% in 2023.

Should I buy a house in 2022 or wait? ›

Unsurprisingly, many home buyers are left wondering: Is buying a house still worth it in 2022? The short answer is yes. If you're financially ready, buying a house is still worth it — even in the current market. Experts largely agree that buying and owning a home remains a smarter financial move than renting for many.

Will house prices go down in 2022 the Times? ›

Further rate rises are expected throughout 2022, which could seriously dampen the housing market because it means mortgage repayments will increase. The cost of living crisis is likely to be the biggest cause of a slowdown in the housing market.

What causes house price crash? ›

Forces that make a housing bubble pop include a downturn in the economy, a rise in interest rates, and a drop in demand.

What will house prices be in 2030? ›

Prices Will Be Much Higher

It's almost a given that in spite of current high prices, houses will cost even more 10 years down the line. According to RenoFi, the cost of a single-family home in the U.S. is likely to hit $382,000 by 2030.

Should I sell my house now? ›

With continued supply shortages and high buyer demand, now is a good time to sell your home. And with interest rates on the rise, it may be better to sell sooner rather than later — if rates spike much more, some prospective buyers may retreat from home shopping. But consider your reasons for selling carefully.

How much will my home be worth in 5 years? ›

How much will property prices rise in 5 years? Based on historical averages of 3.5% of home value growth per year, property prices will rise a total of about 18 to 20% in 5 years.

How high could mortgage rates go by 2025? ›

Conversation. Are 8% mortgage rates possible by 2025? Most people expect the interest rate on a 30-year fixed-rate loan to increase to 6.7% next year and reach 8.2% by 2025.

Will Denver home prices drop? ›

Denver-Aurora-Lakewood Metro home values have gone up 11.6% over the past year. Zillow forecasts that Denver home values are expected to rise by 1% between September 2022 to September 2023.

Should I sell my house now before recession? ›

With economists predicting a high likelihood of a recession in 2023, it makes sense to sell your home now. A recession means increased unemployment and fewer qualified buyers. So, even if home prices don't plummet, you could still have difficulty finding a taker if you wait until next year.

Do real estate prices ever go down? ›

That's an impressive figure, but housing prices aren't guaranteed to rise each year. They can even fall, though that has been a relatively rare occurrence. The housing market is like all investment vehicles: Rising values aren't ever a certainty.

Will mortgage rates go down in 2025? ›

According to interest-rate predictions from algorithm-based forecasting service Longforecast, the 30-year-mortgage rate in the US, which is strongly linked to the base rate set by the Fed, was projected to hit between 14.02% and 14.88% in January 2025, a big mark-up on current rates of about 6.9%.

How can I avoid high mortgage rates? ›

7 ways to reduce mortgage rates
  1. Shop around. When looking for mortgages, be sure to contact several different lenders. ...
  2. Improve your credit score. ...
  3. Choose your loan term carefully. ...
  4. Make a larger down payment. ...
  5. Buy mortgage points. ...
  6. Rate locks. ...
  7. Refinance your mortgage.

Are mortgage rates going to stop going up? ›

Mortgage rates may continue to rise in 2023. High inflation, a strong housing market, and policy changes by the Federal Reserve have all pushed rates higher this year. However, if a serious recession comes on, we could potentially see a dip in mortgage rates.

Will houses be cheaper in the future? ›

Economists at Goldman Sachs expect home prices to decline by around 5% to 10% from the peak hit in June. Wells Fargo has recently forecasted that national median single-family home prices will drop by 5.5% year-over-year by the end of 2023.

Will help to buy continue after 2023? ›

When does the Help to Buy scheme end? Help to Buy: Equity Loan closes on 31 March 2023 and closed to new applications on 31 October 2022. To be eligible for an equity loan, you must legally complete by 31 March 2023 and you're expected to have the keys to your home by 6pm.

Do house prices crash during recession? ›

Across all of those recessions, the average house price dip was 5% for each year the economy remained down. In some cases, that drop was huge: In the Great Recession, the average home price dropped by nearly 13%.

Will the housing market be better in 2025? ›

13% expect the market to favor home buyers in 2025. While just 8% expect that to happen by sometime in 2026 or sometime in the next five years. Metros in the South and Midwest are the least likely to see price declines over the next year. Vacation market areas are most likely to see price declines.

What happens when the housing market crashes? ›

In addition, a market crash can lead to foreclosures, as borrowers who can no longer afford their mortgage payments may be forced to give up their homes. This can have a ripple effect on the economy, as foreclosures often lead to lower property values in the surrounding area.

Are housing prices expected to drop in Colorado? ›

Higher interest rates are already translating to more inventory, lower or flat prices, and longer days in the MLS. Denver-Aurora-Lakewood Metro home values have gone up 11.6% over the past year. Zillow forecasts that Denver home values are expected to rise by 1% between September 2022 to September 2023.

What will happen to house prices in 2025? ›

However the OBR predicts there will still be an increase of 10.7% in house prices this year, followed by a decrease of 1.2% in 2023 and one of 5.7% in 2024. After this the OBR expects prices to rise again, by 1.2% in 2025, 3% in 2026 and 3.5% in 2027.

Why are house prices so high in Colorado? ›

The S&P index allows comparison across 20 of the largest U.S. metro areas, and Denver had the 9th fastest home price growth over the year. Since June of 2021, Denver has surpassed the national rate of price growth. It all is due to a gross imbalance of supply and demand.

Are Denver housing prices falling? ›

On average, homes sold for 98.9% of the list price in September 2022. This time last year, homes were selling for 101.9% of the listing price. Nearly 60% of Denver-area sellers dropped their asking prices in July.

Will the housing bubble pop Colorado? ›

With home prices increasing by over 30% nationally since June 2020, many people wonder if Denver is in a housing bubble about to burst. However, experts say several factors indicate Denver's housing market remains strong.

Is Denver real estate going down? ›

Denver Housing Market Trends

Over 12 months, the average home price increased by $52,047 for an 8.4% year-over-year increase. DMAR reports the following for residential properties in the 11-county Denver metro area during September 2022: Active listings at month end: 7,683 (the historical average is 15,663)

What will house prices be in 5 years? ›

It said house prices will have risen 6 per cent by the end of 2022 but that they will fall 5 per cent in 2023 and a further 5 per cent in 2024 as a result of the sudden spike in mortgage rates caused by the government's fiscal plans. This would take house prices back to where they were last summer.

What will happen to property prices in 2023? ›

'House prices will fall 5% in 2023 but some markets will outperform' - FTAdviser.com.

Will house prices rise over the next 5 years? ›

Many probably will. Into 2024 and 2025, research house Capital Economics is predicting a gradual rebound of house prices. We aren't likely to see the 'hockey stick' growth that was experienced during the pandemic years, but values are likely to creep up towards the end of the period.

Will property prices fall in 2025? ›

House price predictions up to 2026

This sees 2022's 8% price growth followed by 1% for 2023, 2% for both 2024 and 2025, and 3% for 2026. It breaks down its house price predictions by region.

Is Denver housing a bubble? ›

Unlike the housing bubble of the late 2000s, there is no oversupply of homes. Rather, Colorado still has extremely low inventory and steady demand. There is no “cliff” for Colorado's housing market to fall from. Rather, Weinstein said rising interest rates and other factors will bring the market to a plateau.

Is Denver Getting Too expensive? ›

By the numbers: The Mile High City's median asking rent among the thousands of Denver-area listings posted through Dwellsy totaled $2,550 last month, a 45.7% spike from August 2021, the report showed. Denver is the ninth most expensive metro in the country.

Is Denver real estate overpriced? ›

Currently, the average home in the area is selling for about $577,543, according to estimates from real estate data company Zillow.
...
Denver, CO is One of the Most Overpriced Housing Markets in America.
Rank35
CityDenver, CO
Premium paid on avg. homesale (%)31.1
Average home price ($)577,543
49 more columns

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