Photo: Construction cranes dot the downtown Denver skyline
As we roll into the dog days of summer, the hottest thing in Denver is no longer the local college hockey team. It’s real estate. According to The Denver Business Journal, the only market hotter than Denver is Seattle. That’s according to California-based Veros Real Estate Solutions, which estimates that Denver-area homes will appreciate 10.3 percent over the next 12 months, behind only Seattle’s expected 11.1 percent appreciation. This follows years of double digit price growth for homes in the Denver area.
People moving to Denver is the cause of tight housing inventory. Want a nice Denver bungalow on the south side of Denver? The median cost of a home in the city has moved up to a red-hot $439,161.
In the city of Denver, 7,672 new rental units are being built this year and the average rent for a 2-bedroom unit is $1,330. However, apartments located in the core of the city are $2,000-3,000 per month. And, apartment leases are often signed before construction is complete. According to The Denver Post, 13,028 people moved to Denver the past 12 months – a 2.7% growth rate for the city. The 1,000+ newcomers each month will drive the city of Denver over 700,000 residents before the end of the year. Home prices are now 49.1 percent above the old high they reached in the first quarter of 2006 – faster than any other city in the nation.
Have a dream of moving back to Denver and living near campus?
Try this contemporary 4 bedroom, 3 bath home at 1843 South St. Paul for a mere $974,900.
Want something more modest? Try this neat little starter home for $500,000 at 2328 South Williams Street with 3 bedrooms and 3 baths.
Something a bit more substantial near Observatory Park? You can pick up this 4 bedroom, 4 bath beauty at 2260 South Cook Street for a cool $1,990,000!
“Seattle and Denver again show no signs of letting up as the top markets,” according to Eric Fox, vice president of statistical and economic modeling at Veros.
While rents are beginning to plateau thanks to the glut of new housing options across the city, Denver remains an expensive though extremely appealing place to live. Not a bad recruiting tool!