Top 5 Best Real Estate Investment Markets in Colorado

By 

Ben Mizes

Updated 

May 14th, 2019

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Real estate in Colorado has proven to be a profitable investment choice when you pick the right market. There are many desirable locations, so it’s important to do research on each location and partner with a professional to help you make a successful investment.

The real estate market in Colorado has grown steadily and shows no signs of a slowdown. The prices are not only rising, but the predictions for the future are encouraging as well. People from all over the country are flocking to Colorado for its growing economy and breathtaking beauty.

Being that Colorado is a popular state to move to, we want you to be able to have all the necessary knowledge to find the best properties to invest in. Here are the top five real estate investment markets in Colorado.

An Overview of the Colorado Real Estate Market

Right now, the real estate market in Colorado is a buyer’s market. Generally, the current median home value of the state is $377,500. Home values have increased about 4.8% from 2018 and are expected to rise another 2.7% in 2019, which indicates that now is the perfect time to buy an investment property.

The median price of homes currently listed in Colorado is $424,900, while the median price of homes that sold is $367,700. If you’re planning to buy, the median list price of a square foot is $247.

If you are going to be using your property as a rental property, as opposed to a flip, the median rent price in Colorado is $1,950. As of 2019, 4.5% of homes in Colorado have negative equity. This is encouraging, especially when you observe that this figure is half the national average.

The rate of unemployment in Colorado is currently at 3.5%, which again, is well below the national average. Further evidence of a healthy real estate market in Colorado is the low delinquency rate on mortgages which is currently at 0.4%. The delinquency rate is well below the national average which is at 1.1%.

Denver

Denver is the state capital of Colorado and has a population of around 600,000 people. This booming city makes it the perfect place to utilize newer real estate investments like Airbnb. Due to the high amount of tourists that flock to this city for its fun activities and breathtaking views, you are bound to have potential clients looking to rent from you.

Right now, Denver is in a buyer’s market, which makes it even better for investment. This is the time to purchase property, make the renovations, and either sell or start renting. The median price of homes currently listed in Denver is $484,900 while the median price of homes that sold is $415,300. The median rent price in Denver is $2,150, which is higher than the Denver-Aurora-Lakewood Metro median of $2,100.

New Castle

Recently, New Castle has become one of the fastest growing communities on the Western Slope. Some of the popular activities that bring tourists in are three parks that include access to fishing spots, boat ramps on the Colorado River, and the New Castle Museum. For adventure seekers, the nearby White River National Forest's 225 million acres is home to activities like downhill and cross-country skiing, camping, hunting, and four-wheeling.

Now, as an investor, you can take advantage of moderate home prices and provide rental properties to the new residents and frequent travelers. The median home value in New Castle is $371,400. New Castle home values have gone up 5.8% over the past year and Zillow predicts they will rise 7.4% within the next year.

Manitou Springs

Manitou Springs is a quaint mountain town just six miles west of downtown Colorado Springs. They’re known for being a historic town featuring time-honored art galleries, street performers, creek-side restaurants, and boutique stores. They also have the Manitou Incline, which gains nearly 2,000 feet of elevation over less than 1 mile. Activities like these draw in visitors who love spending time in nature and getting a nice workout at the same time.

Not only does Manitou Springs have activities for its many tourists to enjoy, but their housing market is promising. The median home value in Manitou Springs is $388,500. Manitou Springs home values have gone up 9.9% over the past year and Zillow predicts they will rise 5.6% within the next year. These numbers prove that now is the best time to buy in this growing town to take advantage of rising home values.

Boulder

Boulder is another great city in Colorado that is in an active buyer’s market. What’s great about Boulder is you have many young professionals flocking here for work and college students looking to call Boulder home for the next four years. This type of demographic is perfect for renting houses, apartments, townhomes, and even on platforms like Airbnb.

The median home value in Boulder is $740,300. Boulder home values have gone up 4.5% over the past year and Zillow predicts they will rise 2.8% within the next year. The median price of homes currently listed in Boulder is $849,450 while the median price of homes that sold is $725,000. The median rent price in Boulder is $2,400, which is higher than the Boulder Metro median of $2,200.

Colorado Springs

Colorado Springs is a buzzing city for tourists looking to spend time in their 55 area attractions, including trains, museums, parks, zoos and more. It also attracts residents looking to plant their roots in a city where you’re engulfed in nature and the beauty of the mountains.

The Colorado Springs real estate market is a hot seller’s market right now. The median home value in Colorado Springs is $293,500. Colorado Springs home values have gone up 8.8% over the past year and Zillow predicts they will rise 5.5% within the next year. If you’re looking to rent a property out, the median rent price is only $1,500. Due to the high demand in the seller’s market and the increase in home value, selling an investment property might be more profitable.

Why You Should Hire an Expert Local Real Estate Agent

Whether you’ve never invested in real estate or you’ve already started your portfolio, partnering with a real estate professional is always a good idea. They can offer guidance through every step of the way and help you conduct market research to pick the right location.

Clever Partner Agents understand the local market and how much success can come from real estate investments. With Clever, you’ll be able to get the quality service that any real estate agent can provide while spending less on commission rates.

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