Have you been considering investing in Denver’s real estate market? There are a number of reasons why this is a great idea!
Denver has long been praised for its high standard of living and proximity to stunning outdoor spaces, and in the latest days, the city’s tech community has flourished, adding to the city’s allure. Denver was placed second in the United States for best places to live in 2020 by U.S. News & World Report based on lifestyle quality and job prospects.
The Denver-Aurora-Lakewood metropolitan area has experienced an increase in in-migration and corporate development. Consequently, there are a number of opportunities for investors in the area!
But how can you, as an investor, know if the Denver real estate market is right for you? Here are some of the top reasons to invest in the Denver, Colorado real estate market:
Diverse and Strong Economy
Denver is considered a highly desirable destination for commerce and career opportunities. This is due to its diverse industry, highly skilled workforce, and outdoor leisure. Ultimately Denver and its adjoining metro area are appealing to businesses which consequently draws in many people to the state.
The Denver economic system has historically been driven by the oil and gas industry, but the past few years have seen a shift. The universities, which have invested government research funds to propel major expansions in the technology industry, are increasingly tasked with propelling the local economy.
Therefore, Denver’s real estate market is not just becoming more diverse but also creating more employment opportunities for young, educated professionals. In fact, in the past few years, employment growth has outpaced the national average. Increasingly businesses are deciding to move their entire operation or expansions to Denver.
So what’s the implication for real estate investment in Denver? A growing number of individuals are relocating and looking for housing in the Denver real estate market, particularly young executives and their families. And judging by the growth in the market, this trend will be maintained in the future. This presents an exciting opportunity for investors to target these new residents as tenants.
Steady Population Growth
Population growth is often a great sign that an area is worth investing in. Strong economic conditions lead to faster population growth. Because there are so many job prospects, current population growth has been trending upward and is expected to continue to be higher than the national average.
Denver is one of the most rapidly expanding cities in the US as it appears that everyone is relocating to the already populated Denver-Aurora-Lakewood metro area. That’s undoubtedly encouraging news for anyone considering investing in Denver’s real estate market.
An increase in population leads to an increase in the demand for housing. While developers and public authorities have taken note of this and would want to provide housing, the property market is very slow in reacting to such changes. As a result, there could be an influx of people seeking rental accommodations.
Booming Tourism Numbers
If you’re thinking of investing in short-term rentals, Denver is the right place. For the tenth year in a row, Denver welcomed approximately 16 million visitors. Not many cities can boast of such impressive numbers. The majority of these visitors to Denver are tourists. They decided to enjoy the various activities that Denver has to offer.
Outdoor recreational activities are something that Denver and the surrounding area have in plenty. That is a significant component of luring tourists and young families who like outdoor lifestyles to the city. Popular attractions include:
- Rocky Mountain National Park
- Mount Sneffels
- Mount Evans
- Denver Zoo
- Denver Botanic Gardens
These tourism destinations are a powerful determinant of Denver’s real estate market coupled with the city’s rising economy since they make short-term rentals feasible. This equates to an opportunity for significant profits for anyone prepared to make an investment by getting a property in Denver.
Promising Pricing Trends
With the rising cost of real estate in Denver, now is the best time to purchase your next rental property. With the rise in housing prices, however, there is also a rise in demand for an affordable rental alternative.
In fact, this trend is being seen amongst many young adults and families who are choosing to rent rather than buy a home. Rents are also expected to continue to rise from the already record rates which bode well for investors. In the meantime, both interest rates and vacancy rates are currently set lower than in previous years.
With some guidance on property trends and pricing, you can exit the Denver property market when it’s doing well and enjoy a good appreciation in value. In the meantime, however, you can enjoy the passive income generated from solid rent rates.
It is obvious that buying real estate in Denver may do wonders for your finances. Thanks to its strong economy and good job numbers, the opportunity for short and long-term rentals, and pricing trends, there are plenty of real estate investment opportunities in the region.
Do you wish to simplify the process of purchasing and renting out your investment property? To find out more about our excellent property management services, get in touch with Keyrenter Property Management Denver.
We are a leading property management service provider known throughout the Denver region for our sound and professional advice. Our expert team has guided hundreds of investors in the past, advising them on which neighborhoods to invest in.
Contact us today to learn more about our professional real estate management services!