11 Jul Boulder / Denver Real Estate Market Update
The Denver/Boulder Metro area has added 309,500 residents since 2010 and experienced the strongest millennial growth of any large metropolitan area in the country, beating out Seattle, Austin, San Jose, and San Francisco. These trends are largely due to Colorado’s strong tech and energy industries. Residential building struggles to keep up with the population influx, and instead focuses mostly on apartment and infill projects in the more urban areas popular with the millennial population.
Because of the growing number of new residents to the metro area, both rents and housing prices have skyrocketed since the recession recovery became recognizable in 2012. To compound this challenge, there is a noticeable lack of new residential building in the lower price points that millennials, as well as lower wage earners can afford. This lack of affordable new construction is due partly to less developable land (particularly on the west side of the metro area), substantially increased development cost, as well as the construction defects laws (making attached dwelling construction more challenging and litigious for builders).
As a result, the demand for housing in the more affordable price ranges of every metro area community remain extremely high, and multiple offers are still the norm in the lower price points. However, in examining the higher price points of these communities, we are experiencing less buyer demand and the markets are more balanced and even leaning towards a buyers markets in a few specific metro communities such as the City of Boulder.
- The rate at which both single family homes and attached dwellings are appreciating has declined over the last 3 months.
- In the City of Boulder specifically, the percentage of homes under contract has decreased for 3 consecutive months.
Denver Counties: (including Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson Counties)
- The Denver real estate markets continue to perform at almost identically to this time last year. In inventory, days on market, % under contract, rate of appreciation and volume sold we are experiencing little change from July 2016.