Colorado Housing Market Report
Updated: Jul 26, 2019
The Colorado real estate market has continued to generate lots of interest from individuals within and outside the country. The Colorado housing market has continued to grow over the years, thus attracting lots of investors and new residents. It has continued to generate attention across the country, and many investors and other individuals currently want to understand the Colorado market before making any investment or relocating to the state. Here are the essential statistics you need to understand before making any investment in the Colorado real estate market;
Economy: The economy of Colorado has continued to significantly improve over the years. Colorado currently has an unemployment rate of 3.1 and is below the national rate, which stands at 3.6%. Colorado continues to grow in terms of job opportunities as the state of Colorado has recorded more than 50,000 jobs in 2019 alone according to statistics from CPS. Statistics from both CPS and CES survey give the estimated number of jobs in Colorado at 2,766,500 as of May 2019; this is an excellent advantage to the housing markets as it signifies that more than 40,000 persons are likely to either rent a property or purchase a property. Also, the good economic shape of Colorado affects the housing market as individuals are likely to invest in second homes. It is safe to say that the housing market in Colorado is bound to witness an increase in housing demand with a probable short supply.
Population: The population of Colorado is growing at a tremendous level. The excellent economy of Colorado has continued to attract lots of individuals who are seeking better job opportunities or are willing to invest in the Colorado market to profit from the booming economy. The population of Colorado Is estimated to be around 5,770, 545 as of 2019; this figure is a projection of a growth rate from the 2010 census, which estimated the population of Colorado to be 5,029,196. It is estimated that the state of Colorado witnesses about 60,000 to 75,000 new residents on an annual base. The state of Colorado is witnessing a 1.9% increase in population, ranking it as the second fastest-growing state in the country. These statistics make the Colorado housing market a very lucrative venture for both homeowners and real estate investors. Outside these statistics, Colorado also experiences lots of tourists as it has many Ski cities and recreational locations, making it extremely attractive for investors; this has made the Airbnb market very lucrative. Also, the high rate of tourism makes it profitable for real estate investors in hotels and resorts.
Sales Market: Colorado boasts of a great economy and also a millennial population; this has made the sales of real estate properties very promising. The Colorado economy has made it very profitable for the home market as two cities in the state of Colorado made it to the PWC list of emerging trends in real estate. Also, several cities in Colorado were rated among the next real estate hot spots to look out for. The value and prices of the homes have continued to increase as a result of improvements in the standards of living and increased the cost of living, making the Colorado housing market very lucrative. The median price for a home in Colorado’s sales market ranges from $500,000 to about $550,000 according to statistics from Mashvisors data and analytics. The price of home sales ranges from $500,000 to $550,000 while the median value for a home is estimated to be around $374, 000 according to statistics from Zillow. The current home value in Colorado witnessed a 6.6% rise from 2018 and is bound to increase further by 4.5% before the end of 2019, according to statistics from Zillow.
Rental Market: The Colorado rental market is also experiencing a boom as most individuals who cannot be able to afford a house are renting. The great news about Colorado’s rental market is that despite the increasing number of individuals seeking to rent, the rate of rental vacancy remains low. The high demand for rental properties is currently very lucrative, and real estate investors are already tapping into this huge market. The median rent in the state of Colorado is estimated to be around $2,014. This is a great investment and also has a significant return on investment. The state of Colorado also happens to be a landlord-friendly state, so you have a great business environment as a landlord in Colorado. Also, another reason why Colorado rental property is one of the best in the country can be attributed to the high rate of Airbnb rentals. Colorado is a tourist hotspot, and as such lots of people rent out their vacation homes; the state of Colorado witnesses a high level of tourists all year round. The Airbnb market is quite enormous in the state of Colorado as more than 36,000 homes were listed for Airbnb as of December 2018 generating over $300,000,000 for Airbnb hosts according to statistics from AirDNA.
The Colorado housing market is vast and lucrative, but it might be a little challenging for new investors. If you need proper guidance that would enable you to penetrate and navigate the Colorado housing market, you can contact Top Tier Real Estate at (719) 330-5556.