Denver, Colorado has been attracting a variety of new residents in recent years, drastically affecting the real estate market. This real estate boom can be attributed to the beautiful mountain views, but we believe it goes deeper than that.
- A National Recession Left Real Estate Wide Open
After the 2008 stock-market recession, the people of Denver were left with decreased incomes, salary freezes, and even loss of jobs. As the community went on a spending-hiatus, there was a lot of Denver real estate left just sitting. About four years later, when companies were looking for cheaper rent away from either coast, Denver got caught up in a commercial frenzy.
- Tech Startups Moved In
A few years ago, tech companies saw low-rent spaces in Denver and decided to move in. Startup companies like Layer3 TV found Denver the perfect place to get their business started, while businesses like Lockheed Martin also saw Denver as the perfect place to expand. Other businesses caught on and, with more jobs available in Denver, came more residents.
- Millennials Value “Unconquered” Cities
Recent college graduates, millennials as we know them, value their freedom. Freedom to choose their jobs, chase their passion, and discover the “latest and greatest” cities their friends haven’t explored yet. After Denver’s tech scene began to grow, so did the millennial population, who looked for the perfect startup job and a relatively new urban area to settle in. This influx of millennials drove the need for housing upward, while availability lowered, creating a dramatic shift in Denver real estate.
- Recreational Marijuana Was Legalized
The legalization of recreational marijuana has created a large increase in jobs in the area. It has also added a new allure to the State of Colorado that wasn’t there before for tourists, and marijuana enthusiasts. With an influx of jobs, real estate needs for marijuana businesses and recreational users looking for vacation homes, Denver’s real estate market has been greatly affected by recent marijuana legislation.
- Rental Prices Have Skyrocketed
The influx of people due to tech jobs and the marijuana industry has caused rental prices to skyrocket. Currently, it is much more affordable to purchase a house than it is to rent in the more urban areas of Denver, a fact which has spawned a large number of first-time buyers. Once again, the supply of properties for sale has not been able to keep up with demand and the housing market has become incredibly competitive.
- Where Real Estate Starts, Luxury Ends
With the rise in the general Denver job and real estate market, the demand for luxury homes in Denver has increased as well. The tech and marijuana industry CEOs and investors are now looking for their own luxury home within the Denver Metro Area, and big investors are flocking to the relatively small city with such a wonderful mountain view.
The Denver real estate buzz reaches beyond the Metro Area and into the suburbs and foothills of the Rocky Mountains. Who knows how long this bubble will last before it bursts. For now, Alaris Properties is here to help you stay informed when buying a home in this incredibly competitive market, and help you find the perfect home.