Denver, the capital city of Colorado, is one of the largest cities and metropolitan areas in the mountain region. As of the U.S. Census Bureau’s July 2018 estimates, Denver was home to 716,492 people, and the metro region is home to more than 3 million people.
Since 2010, Denver has grown in population by 19.5 percent, an astounding growth rate that is somehow predicted to grow even larger in coming years. In fact, after a few years of stagnant growth, Denver’s population began to tick up again in 2017 and 2018, and the metro region is expected to balloon to 3.3 million by 2020.
Denver is a highly attractive place to live, and more people are flocking to the city and region every day, making it a prime location for real estate investment.
Investment Considerations for Denver Real Estate
Investors should consider the following factors when looking to invest in the Denver real estate market:
- Quality of life – People love Denver and the surrounding metro region. It is consistently ranked among the best places to live in the country, and was recently named number three on that list, according to U.S News and World Report. There are plenty of amenities, wonderful outdoors opportunities and beautiful scenery for all to enjoy.
- Rental market – One of the best ways to invest in the Denver real estate market is through single-family rentals. In fact, 42 percent of residents in Denver are renters, and single-family detached homes are the most common housing form in Denver. The current average rent cost in the city is $2,200 a month, which provides an excellent return on investment opportunity.
- Appreciation– From 2017 to 2018, Zillow reported that home values in Denver appreciated by almost 7 percent, and they expect that to increase another 6 percent in 2019. The median home value is $415,000, and that is still expected to go up in the future. The best part about investing in real estate in Denver is this appreciation, which has grown at a rate of 8.5 percent. That mark puts Denver higher than almost every other region in the country.
- Foreign investment – Unfortunately, the word is out about Denver, and that is being seen with foreign investment in the city’s homes. The National Association of Realtors said there was more than $1 billion invested by foreign parties in Denver in 2018. That signifies that Denver truly is a hot market, but it also means it’s going to be harder and harder to find a good deal as time goes on. In fact, it may mean you need to either overpay for a home or buy a fixer-upper if you don’t act soon.
The Best Markets/Neighborhoods to Invest in Denver
If you’re looking for a neighborhood with a suburban feel and lots of families, then Stapleton might be a good place for you. The neighborhood is home to Central Park, and there are lots of community gardens, pools and even skate parks. Stapleton is located in the northeast portion of Denver, and rents in the neighborhood average around $1,650 a month.
On the southeastern side of Denver is Indian Creek, one of the safest neighborhoods in the city. Nearby is the city of Chennai Park, which has wonderful walking trails and is great for biking and other outdoor activities. Rent in the Indian Creek neighborhood could fetch approximately $1,200 each month.