Is Denver a Good Place to Invest in Real Estate?
Should you consider investing in real estate in Metro Denver? You need to drill deeper into trends if you want to know what the market holds for real estate investors and buyers this year and in 2023. Denver is ranked as the country’s 16th most walkable city, with 600,158 residents. It has excellent public transportation and is very bikeable. Downtown is the most walkable neighborhood in Denver with a Walk Score of 93.
As per Neighborhood.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Denver. Other types of housing that are prevalent in Denver include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 40-45 percent of Denver’s housing units.
Denver ranked 13th for overall real estate investment and development, according to 3,000 industry professionals surveyed and interviewed by the Urban Land Institute and PwC. Survey respondents viewed Denver’s housing market even more favorably, collectively ranking it ninth overall.
Of greater importance to real estate investors in Denver is that the area is growing in population. The jobs are increasing and so are the number of renters. It is the largest and the capital city of Colorado. The Denver metro area is home to about 2.7 million people. The population has increased by 1.33 percent from 2019. The Denver-Aurora statistical area is home to about 3.5 million people.
Metro Denver has a low unemployment rate of three percent, down from 6.7 percent one year ago, according to the U.S. Bureau of Labor Statistics. A third of the population of metro Denver are renters. All of are excellent signs for investors looking to buy a rental property in Denver. Despite the recent cooling off, there are several reasons to consider a long-term investment in the Denver real estate market.
Shortage of housing for a growing population, a strong economy, and increasing jobs have been fueling the demand in the Denver housing market for the past several years. Denver is a key trade point for the country, and home to several large corporations in the central United States. It was named 6th on Forbes Magazine’s “Best Places for Business and Careers.” Metro Denver is home to seven Fortune 500 companies.
Metro Denver is the headquarters for mining and energy companies such as Halliburton, Smith International, Newmont Mining, and Noble Energy. When you also consider that some of the best ski resorts in the world are located in the nearby Rocky Mountains and Denver’s outdoor lifestyle, metro Denver is an excellent choice for real estate investing.