Denver Real Estate Market Trends 2024

Beth Davis

All County Editor

Whether you’re a seasoned investor or new to property ownership and management, understanding the “Mile High City” Denver real estate market is crucial. This city’s housing landscape is ever-changing and experiencing dynamic growth.

In fact, the Denver real estate market is on fire. In April 2024, Denver housing prices jumped 9.3% compared to 2023, with a median price of $620K. Zillow reported the median sold price of homes at almost $580K, up 0.7% over the past year, with properties selling faster than you can say “sold.”

This post will analyze current trends and offer insights on making informed investment decisions in this bustling metro area.

Is Denver a Buyer’s or Seller’s Market?

If you’ve been wondering if it’s a seller’s market—spoiler alert—it mostly is! But don’t fret; there are opportunities for buyers, too.

The Denver real estate market continues to be in high demand with low housing supply, so it’s a seller’s market. On average, homes in the Denver housing market are selling after just 12 days on the market as of April 2024! (While this is quick, it’s actually down from 10 days in 2023.) The median sale price per square foot for Denver real estate is $391, a 4.1% increase since last year.

What’s nice for buyers about the market being in the hands of sellers is that rental interest tends to be higher for those who don’t have the finances (or are waiting for the right time) to buy. So, if you have an existing rental property, or you intend to buy with the intent to rent out your property, you should expect strong property appreciation with a good number of potential rental candidates lining up!

Factors Influencing Denver’s Housing Market

This competitive housing market is influenced by Denver’s status as the state capital, home to many employers, and one of the largest cities in the Mountain West region. People have also been moving to Denver from more expensive cities in search of a lower cost of living, an outdoor lifestyle, and the ability to work remotely in the picturesque Rocky Mountains.

Challenges for Buyers and Sellers

On the other hand, the Denver housing market may reach a turning point after years of increasing home values. Buyer demand is adjusting to rising mortgage rates, which could present challenges for both buyers and sellers. Buyers may face increased competition and higher prices, while sellers may need to adjust their expectations as demand shifts. Stay informed about the latest Denver real estate market conditions so you can make the right decision.

Investing in Denver Real Estate

When it comes to the best areas for real estate investment in Denver, it’s always advisable to focus on neighborhoods near major employers, transportation hubs, and popular amenities.

Denver Neighborhoods with the Highest Demand

Which neighborhoods are in the highest demand for buyers? Some of the most sought-after Denver neighborhoods for buyers, according to Bungalow, include:

• South Park Hill
• University
• Highlands
• Cherry Creek
• Five Points
• Capitol Hill
• Golden Triangle
• Washington Park
• Baker
• Lincoln Park
• Sloans Lake

These areas offer a mix of lavish nightlife and entertainment, shopping, restaurants, parks, schools, points of interest, safety, affordability, and walkability. As a result, they have a lot of interest; areas located in a great location tend to appreciate, so it’s hard to go wrong.

These areas also offer strong potential for appreciation and rental demand:

• LoDo (Lower Downtown) is perfect for young professionals. It’s close to Union Station, Coors Field, and many restaurants and bars.
• Highlands is a trendy area with many new developments, making it great for fix-and-flip projects or Airbnb rentals.
• DU/University has a steady rental demand from college students and professors.

Long-Term Denver Housing Market Forecast for 2025 and Beyond

Denver home prices aren’t dropping. The market remains competitive with steady demand and limited inventory. The city’s high quality of life, educated workforce, and diverse economy should continue to make it an attractive destination for years to come. However, Forbes reports that the market is gradually shifting to neutral as active listings grow and buyers become more cautious.

While we may encounter some bumps along the way, the Denver real estate market is well-positioned for steady growth over the next 5-10 years with a strong job market and growing population. As more people continue to move here for work and lifestyle reasons, the demand for housing is likely to be robust. Some key stats to consider:

• According to the U.S. Census Bureau, Denver’s population has grown by nearly 20% over the past decade.
• The unemployment rate in Denver was just 3.7% as of March 2024, well below the national average.
• Companies like Amazon, Google, and Salesforce have all expanded their presence in Denver in recent years.

Potential Risks and Challenges

Of course, no investment is without risk—and the Denver housing market is no exception.

• Rising interest rates can make financing more expensive and cut into your profits.
• Changing regulations, especially around short-term rentals, can throw a wrench in your plans. Stay on top of local laws and have backup exit strategies.
• Shifting buyer preferences may impact what renters or buyers are looking for. Be ready to adapt your investment property to meet the market.
• Affordability concerns, as Denver home prices have already risen much faster than incomes.
• Potential oversupply if too many new apartments and condos are built (although this risk seems less prominent for Denver).

Is now a good time to buy an investment property in Denver? If you can afford the current prices, it’s worth buying now before they climb higher. The cost of homes reflects strong demand and limited availability, making the asking price seem pricey but justified by the local economy.

Interest from renters typically remains high when housing prices are robust, so for those who invest in a rental property, the demand should stay strong. With the right preparation, investing in Denver real estate can still be highly profitable, even in a fluctuating market.

Contact All Property Management For Your Denver Rental Management Needs

Your next step? Dive into those new listings! Whether buying or selling, staying informed gives you an edge—and who doesn’t love having that?

Partner with All County Property Management for your investment property in Denver today. We are professional experts in long-term residential property management with over thirty years in this business. We are client-focused and handle all aspects of your property, ensuring you peace of mind that your asset is performing to its fullest potential. Give us a call to let us do the heavy lifting on daily management and get your investment working for you!