When considering an investment in rental property, yes, Denver, Colorado is an optimal choice. The location, population increases, plus an active housing market in combination with a thriving local economy and increasing home values make it ideal.
The cultural scene is also thriving. The neighborhoods throughout Denver are highly diverse. Its natural beauty and features make for a spectacular region, bursting with immense opportunities – especially for real estate investors.
The architecture is stunning. The views are absolutely unparalleled all year long. The opportunities – in terms of employment and education – are simply beyond comparison. If you are in search of a real estate investment opportunity that will render high levels of success, Denver is top-rated!
If this is enough to convince you, you might need some help finding a good deal on investment property.
Location
When it comes to sound real estate investments, we all know and understand the importance of “location, location, location.” Denver is situated near the mountains and not actually within them. Often referred to as the “Mile High City”, Denver is based on the high and gorgeous rolling plains. It is just 12 miles due east of the foothills.
Just beyond that is the Rocky Mountains Front Range area. These snowcapped peaks extend to an amazing 14,000 feet. While outside of the mountains, those mountains are known to dominate this amazing city. They create a picturesque panorama that extends for an amazing 140 miles. A total of 200 peaks are visible within Denver. At least 32 of those are situated at – at least – 13,000 feet. Many tenants flock to the area just to be surrounded by this amazing natural beauty.
Not only is this the capital of the State of Colorado, it is the twenty-first largest city in the United States. It is sprawled across a total of six different counties and includes a whopping 3,497 total square miles within the foothills of the Rocky Mountains and the High Plains region. It is also considered to be the epicenter of the state in terms of culture, politics, and economics.
Population Increases
In order to succeed in any rental market, you need people. This creates the demand for the supply that you have – be it single-family homes, multi-family homes, condos, apartments, cottages, and any other type of real estate. It is a known fact that the population of Denver is consistently growing on a regular basis. This means that you have plenty of opportunities for finding tenants for your rental property investments!
For example, in the year of 2019 to 2020, there was a 1.33% rise in population. At that time, at least 2,827,000 individuals resided in the year. That figure moved up in 2020-2021 to 2,862,000 residents at a 1.24% increase. Then, in 2021 t0 2022, there were 2,897,000 residents due to a 1.22% increase.
Finally, by 2023, there was an 1.17% increase in the population which resulted in a total of 2,931,000 residents! Denver is simply bursting at the seams with potential tenants for your rental property investments!
An Active Housing Market
Why are so many people flocking to Denver so quickly? While the location and general area is highly appealing, it has a lot to do with the vast level of employment opportunities! There are many in-house jobs and remote jobs. The cost of living is very reasonable. In fact, Denver has been viewed as one of the most stable and balanced of all locations – even after the pandemic!
Most homes in the nation spend 67+ days on the market. Those in Denver may spend as few as 18 or as many as 34! This means property is moving fast and the housing market has an extremely high level of activity! Not only does this indicate more people are buying homes, it indicates that real estate investors are snatching up available properties quickly! This is a sure sign that you should, too!
The Economy
The economy in Denver is highly diverse and – because of that – it is absolutely thriving! The job market – alone – has experienced exponential growth at a rate of nearly 3%. In the next decade, this is considered to grow by a total of 45%! The most popular industries in and around the area include education, retail, healthcare, and technical services.
If you want to invest in real estate, you should market your efforts to those in these industries in order to attract tenants. You will quickly find that you have a pool of tenants that have an immediate interest in your offers and your income will increase instantly!
Home Values and Averages
In the past year alone, the home values in Denver, Colorado have increased to an amazing 20%! The average or median price to buy ranks in at a rate of $627,189.00! It is a highly competitive market and homes sell quickly, so you have to make your move fast.
The rentals in Denver are considered to be some of the absolute best in the entire state!
Your standard two-bedroom has a median rent average of $2,042.00 a MONTH! If you want to specialize in Airbnb, you could make close to $170.00 a DAY! Opportunities abound because of the increase in home values and averages!
Best of all, it is expected – at the year moves on – that the housing market will cool just a bit. This means that prices to buy will go lower and become extremely favorable for real estate investors that are searching to snatch up a good deal. There are many good programs available that will help in terms of loans and grants to purchase property in the area. Before you know it, you will quickly get a return on your investment!
Benefits of Investing in Rental Property NOW
There are many reasons you should invest in Denver rental property now. The following outline these reasons, along with a brief explanation of each:
- Rental Prices Increasing – Urban-based areas are experiencing declines in average rental prices, but suburban areas are seeing increases. In the past year, there has been an 8.8% increase in rental prices within Denver.
- Landlord-Friendliness – Denver is an area that really is on the side of the landlords. The laws and regulations allow for a lot of freedom for landlords. Urban areas often side with tenants. You will find that Denver sides with landlords.
- Limited Supply – There is a limited supply of rentals throughout Denver. If you get in the game now, your rental will be considered part of only a small amount. When supply is low, demand is high. That means that tenants will be searching for what you have to offer and will be more willing to pay what you want for those rentals. If you are in search of an optimal return on investment, Denver will help you experience that!
- High-Quality Living – Individuals flock to Denver because it offers a high quality of living. When the quality of life is high, the occupancy rates on rentals are high. That is just how it goes. Denver offers everything – a beautiful living environment, jobs, variety, and diversity. Your tenants will be looking for all of that and you can provide it with your rental!
- Strong Economy – Job growth is at an all-time high. The economy is strong. This stems from the job opportunities available. In turn, this drives up the demand for rentals. There will be a huge boom this year in the industries of technology, aerospace, oil, and government. As a result, professionals will hit up the area for rentals. You can be a part of that boom by investing in rental properties in Denver!
If you would like more information on rental properties within Denver or would like assistance in your day-to-day property management tasks, contact us here at Pioneer Property Management now by calling: 720-839-7482
