Colorado real estate investors know that Metro Denver and the areas surrounding it present great financial opportunity. With continually growing population, strong local economies, and countless lifestyle benefits, Colorado remains a beacon for new residents and a sticking place for current Coloradans. All factors considered, Colorado real estate investors continue to carefully gather property and wealth. Understanding the local market and its trends becomes an essential component to all real estate investors – read and view below for valuable investing information from a local real estate expert:
Colorado Real Estate Investors View of Rent and Vacancy
It goes without saying that when vacancies in a location go up, rents remain stagnant. And, as rental vacancies decrease, rent prices rise. However, when vacancies rise, rents don’t plummet – they typically remain stagnant or decrease incrementally. Over the last four years, vacancies remained low, creating a sharp rent increase in and around the Metro Denver area (with a yearly increase of about 10%). Although rents will not continue to increase at this breakneck pace, the data suggests a steady rise going forward of about 4%.
Income Property Prices in Denver
The current income property price average clocks in at $220,000 per unit (meaning the average duplex is about $440,000). Though economies go through cycles of downturns and upturns, purchasing and holding income properties over the long term will, historically, earn you money. For example, if you bought income property just before the great recession and held onto it when things looked bad, your property value has doubled!
Forecast: Denver Demographic Trends and Real Estate
Compared to other states across the country, Colorado has a very high population of young people. Our unparalleled lifestyle offerings are largely to thank for this! Colorado’s population increases year over year and the growing “young” population will need to rent or buy, creating ample financial opportunity for property investors in the area.
Learn more about investing in Colorado real estate!