DENVER - The Denver housing market is experiencing a dramatic increase in population, causing the demand for homes to spike dramatically. Meanwhile, inventory levels have plummeted. This one-sided supply and demand situation has led to faster home sales and steady price increases. As a result, the Denver housing market could be one of the most active in the country by 2022-2023.
Rent Prices Are Rising Faster Than Home Prices In 2022
The rental market is expected to continue growing. According to a recent report by CoStar Group, rent prices are rising at the fastest rate in decades. During the past year, rent prices increased by 11.3 percent. In other words, they're soaring faster than home prices.
Denver's housing market has long been outpacing national averages and is expected to continue to do so in the future. The market has remained resilient to volatile market swings in recent years. Despite the recent swine flu pandemic, the Denver housing market performed better than many other markets. The tight housing supply is expected to foster more housing activity.
The low unemployment rate, increased demand, and high economic growth have contributed to Denver's recent home prices increase. Since 2010, employment has increased 25 percent in the city. However, the year 2020 threw a wrench in those employment statistics, with the unemployment rate rising from 2.7% in 2019 to 7.4% in 2020. It then dropped to 3.6% in April 2022.
With an average age of 36, Denver has a growing population of young people. The city is noted as a great place to retire, and its job market makes it an excellent place for Millennials. In addition to that, the quality of life in Denver is encouraging young people to stay.
Interest Rates Are Still Historically Low In Denver
In Denver, interest rates are still historically low, which is good news for home buyers. This is particularly true in the metro area, where an inventory shortage has fueled fierce competition for homes. As a result, many properties have sold quickly, and prices are now higher than they were in 2011. The lack of available inventory has made the Denver housing market a seller's market, but there are some positive factors, too.
The low unemployment rate is one of the most compelling reasons to invest in real estate in Denver. While the unemployment rate is currently below the national average, the unemployment rate in Denver is still relatively low, at just 3%. Additionally, the city's population has grown by 25 percent over the past decade, which is great news for homebuyers. The Denver MSA reported 63,684 home sales in 2021, and the number of new listings fell by 5.26 percent throughout the year.
The city's average age is 36, which is higher than the national average. This makes it an attractive place for retirees as well as young professionals. As a result, Denver is also a desirable place for young adults as well. As a result, there is a housing shortage, and demand for real estate will be high in the coming years.
Although several factors will affect the price of a Denver property, you must be aware of the location of your investment property. It needs to be in a safe neighborhood with a low crime rate and close to basic amenities. Denver has several great neighborhoods for those seeking investment property. These include Berkeley, Park Hill, Cheesman Park, Congress Park, Hilltop, Highland, and Platte Park.
Strong Economy
The state of the economy is an important factor in determining whether Denver real estate prices will be on the rise or fall. The strong economy in Denver has made it possible for many people to buy new homes and enjoy lower mortgage rates. As a result, home prices have been steadily increasing for the past six years. However, a tight inventory of available properties makes it difficult for potential buyers to find a home that fits their budget. Experts predict that this tight inventory will raise home prices in the coming years.
Another important factor to consider is the low unemployment rate in the city. This rate is only 3%, which is unchanged from last month and has declined since last year. These facts are important if you are thinking of investing in real estate in Denver for the long term. If you can make a smart investment, you should be able to take advantage of this low unemployment rate and the high demand.
Lastly, Denver's real estate market is expected to continue its upward trajectory, outpacing the national market in 2022. The city has consistently outperformed the national market and appears less vulnerable to volatile market changes than other cities. The city's housing market did better than many other cities during the recent hurricane season. While Denver still has a low unemployment rate, it is expected that foreclosures in the city will remain low compared to other cities.
