The Denver real estate market presents savvy investors with ample opportunities in 2024. As one of the fastest-growing metropolitan areas in the U.S., Denver’s population boom and thriving job market fuel demand for housing. The experienced Denver CO real estate experts Trish & Maggie Team recommend targeting hot neighborhoods like Stapleton and Lowry near the expanding RTD light rail. Focus on renovating dated properties in up-and-coming transitional neighborhoods for big returns. Here are some strategies to help capitalize on Denver’s 2024 real estate potential:
How to buy a home in Denver: Understand market fundamentals.
Gain an intimate understanding of Denver’s market fundamentals before investing. Denver saw home prices increase 8.6% in 2023. This steady price growth is expected to continue through 2024. The current median home price in Denver is $580,000. The average rental rate for a 1-bedroom apartment is $1,750 per month. Job and population growth continue to drive housing demand. Monitor market reports to identify shifts or slowdowns.
Explore appreciation potential
Look for neighborhoods where home values are rising rapidly and appreciating above the metro median. Areas farther from downtown Denver offer more affordability and room for growth. Congress Park and West Colfax are neighborhoods where investment property could see strong returns from appreciation. Avoid overheated areas approaching the peak of pricing cycles.
Focus on cash flow
The appreciation of an investment depends on market timing, but cash flow is within an investor’s control. Look for property types that maximize monthly cash flow, like duplexes, multifamily properties, and accessory dwelling units. Crunch the numbers to calculate your cash-on-cash return and capitalization rate. Areas close to downtown with strong tenant demand, like Capitol Hill, Uptown, and City Park, offer solid cash flow potential.
Consider value-add upgrades
Updates and renovations that increase value are a tried-and-true method of investing. Look for older, undervalued properties in transitional neighborhoods. Create a budget for improvements like kitchen remodels, bathroom updates, finishes, and landscaping. The renovations will increase rent and property value, resulting in a substantial return on investment. Just don’t over-improve for the neighborhood.
Leverage local expertise
Work with a trusted Denver real estate agent and property manager familiar with the various neighborhoods and housing stock. They can provide critical insights on buying off-market properties, evaluating rent rates, and understanding local regulations. Lean on your team to help analyze opportunities and avoid mistakes.
Homes for sale in Denver
The Denver housing market is seeing increased demand amid its growing tech sector. Many homes are selling rapidly with multiple offers as remote workers relocate. Most homes for sale are newer constructions in the suburbs, like Highlands Ranch and Parker. Popular neighborhoods close to downtown, like West Washington Park, have charming bungalows and Victorians starting around $800,000. The market favors sellers; however, buyers with flexibility on location can still find a reasonably priced home in Denver.
Living in Denver
Denver is a great city to call home. The city has vibrant neighborhoods like LoDo that offer trendy restaurants, breweries, and nightlife. The great weather makes Denver perfect for an active, outdoor lifestyle. The labor market is still strong despite the recent rise in the cost of living. The diversity, culture, and natural beauty make Denver an attractive place to put down roots.
