Colorado - Real Estate Investing: Why Invest in Colorado | HomeUnion

Real Estate Investment in Colorado

Why Invest in Colorado?

Although it is a competitive market for homebuyers, the Colorado real estate market provides plenty of opportunities for investors, especially thanks to its soaring rental demand. While condos are more popular in metropolitan areas, single-family homes are being purchased throughout the state.

With its breathtaking mountaintop views and 300 sunny days a year, Colorado attracts an increasing number of vacationers, no matter the season. When it comes to real estate investing, this translates into a lucrative vacation rental market.

To make it even better, the Centennial State boasts a highly educated workforce and the lowest unemployment rate in the whole of the US, as well as strong health services, business, and education sectors. As a result, Colorado has a steady influx of wealthier homebuyers, which creates an even more versatile array of opportunities for real estate investors.


Investment Considerations for Colorado Real Estate

  • Growing Job Market- While the average unemployment rate at the federal level is 4.1%, Colorado boasts one of the lowest at 3%. The number of job openings is projected to increase by 2.2% during 2018. Since the Centennial State is home to many high-profile companies, especially in health services, business and education sectors, it has more potential homebuyers moving in each year. All this means a steady influx of both renters and homebuyers, who are often able to pay higher prices.
  • Strong Homebuyer Activity Many Colorado-based companies are constantly in need of high-skilled workers. This results in a large number of people who are able to afford buying instead of renting a home. On the other hand, the current Colorado real estate market is marked by a much higher demand than supply. The number of listings in Denver has decreased by almost a half during 2017. It’s a highly competitive market for real estate investors, making it less than ideal for those who aren’t flexible in terms of income and waiting time.
  • Increasing Rental Income- Fewer available units and higher prices have their advantages as well. It is estimated that appreciation for the entire Colorado area will be 7% to 8% during 2018 and 2019. To a patient real estate investor, this could mean a great opportunity to profit from a high rental income. However, this has its downside – it seems interest rates will be going up as well, which means appreciation of your real estate investment.
  • Popularity as a Living Destination- Colorado has gotten 70,000 new inhabitants during 2017 only. Since it was ranked among the top 10 moving destinations, it seems safe to say the Centennial State appeals to all tastes. Of course, being such a popular living destination also means that Colorado is a safe bet for real estate investors.

What are the Best Markets to Invest in Colorado

While rental units in Denver are consistently in demand, the Denver-Boulder area is experiencing its own all-time high. Since sales of homes worth over $1,000,000 are steadily increasing as well, this might just be the right time to invest in Colorado’s luxury market, especially in Douglas, Jefferson, and Weld. All in all, the opportunities for real estate investors are plentiful throughout the Centennial State.


Getting Started in Real Estate Investing?  HomeUnion® Can Help

HomeUnion® Investment MapHomeUnion® is the leader in residential real estate investment. With the use of big data and machine learning, we analyze information on millions of single family homes in Colorado; and across the United States and calculate home values RENTestimate for every property in Colorado. If you’re looking for the best investment properties across the country, visit our comprehensive investment site.