Droves of transplants have found new homes in the Mile High City, making Denver residential real estate one of the hottest property markets in the country. But, everyone already know that! What Denver residents, potential transplants, and investors are wondering is, “when will the market see a downturn?”
This question is impossible to answer with full confidence – Your Castle does not employ Nostradamus after all. However, we do have the next best thing. Your Castle Real Estate President, Charles Roberts, is a long-time Denver investor, successful Realtor, and market data enthusiast. By studying long-term Denver residential real estate trends and local economic factors, Charles presents a well-constructed forecast for the future of Denver residential real estate.
Population Growth and Denver Residential Real Estate
Demographers predict that the record-high population growth seen in the past several years will continue. In fact, they believe that over 50,000 people will move to Denver every year for the coming decade. Colorado’s stunning scenery, unparalleled sunniness, world-renowned outdoor recreation, and healthy local economy draw new residents from across the country and that isn’t predicted to slow anytime soon. You know what that means – high demand for places to live!
The Housing Inventory Shortage Drives Prices Up
Supply and demand fuel any real estate economy and Denver is no different. When supply is up and demand slows, buyers have more to choose from, tipping the scales of power in the buyer’s favor (and lowering home prices). When demand peaks and supply doesn’t follow suit, buyers must compete for a limited number of homes, creating a seller’s market (like we are seeing currently). With the droves of new Denver residents and few people confident in placing their homes on the market, home prices increase. Demographers predict continuing population growth for Denver, meaning that the only feasible way for the market to turn in the buyers’ favor is for more inventory to become available.
Single Family Home Values Continue to Rise
Upon experiencing years of record high numbers for new Denver residents and record lows for homes on the market, Denver’s residential real estate market has seen a steep climb. Experts project both of these factors to continue, meaning that the market should continue to grow for at least a couple more years.
Condos and Townhomes Have Growing Value Too
Like with single family homes, Denver transplants have driven up home prices for condos and townhomes. Especially with detached home prices at an all-time high, people are turning to attached living options – further bolstering condo and townhome prices.
Nostradamus certainly hasn’t spoken, but data and historical trends paint a convincing picture of Denver’s real estate future. The Mile High City can expect continued growth in residential real estate for at least a few more years. To learn more about the local real estate market DOWNLOAD OUR FREE REAL ESTATE TRENDS INFOGRAPHIC BOOKLET for Denver’s real estate market at a glance.