Top 5 Residential Real Estate Investment Markets in Colorado

Trent Seigfried's Photo
By Trent Seigfried Updated May 24, 2024
's Photo
Edited by Michael Yessis

SHARE

Pueblo is home to the best residential real estate investment market in Colorado.

The 81007 zip code in Pueblo presents the greatest opportunity for investors among the 852 individual real estate markets in Colorado we evaluated. We looked at property values, population trends, and six other metrics for each market. We used that data to calculate each market's InvestScore.

Top 5 Colorado residential real estate markets

RankCity InvestScore Affordability Property value appreciation
1Pueblo1004.450.45%
2Craig994.461.60%
3Grand Junction98.55.649.11%
4Colorado Springs98.44.448.56%
5La Junta98.12.956.71%
Show more

Looking to buy or sell in Colorado?

Considering investing in Pueblo, the hottest investment market in Colorado (or another top market)? Own a property in Craig, Grand Junction, or another part of Colorado and are looking to sell? Let us match you with a top real estate agent in your city!

1. Pueblo

We've identified the 81007 zip code in Pueblo as Colorado's best real estate investment market. Here's why.

πŸ”Ž Key data about Pueblo

Data pointValueRank in state (of 852 markets)
Zip code81007N/A
InvestScore 100Highest
Typical property value $395,975[1]35th lowest
Five-year appreciation 50.45%[2]53rd highest
Household income $89,530[3]100th highest
Affordability ratio 4.412th most affordable
Five-year population growth 11.1%[4]60th highest
Unemployment rate 4.4%[5]111st lowest
Property taxes $1,752[6]71st lowest
Educational attainment 30.3%[7]156th highest
Show more

Pueblo (zip code 81007) is the best residential real estate investment market in Colorado. It has the 53rd highest property value appreciation among markets we evaluated, with a 50.45% appreciation of the typical property over the last five years.

Pueblo is the 12th most affordable market among the 852 Colorado markets we evaluated, with an affordability ratio of 4.4.

2. Craig

The 81625 zip code in Craig is Colorado's second-best residential real estate investment market.

πŸ”Ž Key data about Craig

Data pointValueRank in state (of 852 markets)
Zip code81625N/A
InvestScore 992nd highest
Typical property value $282,845[8]10th lowest
Five-year appreciation 61.60%[9]22nd highest
Household income $64,900[10]177th highest
Affordability ratio 4.48th most affordable
Five-year population growth 0.4%[11]146th highest
Unemployment rate 4.4%[12]111st lowest
Property taxes $1,096[13]26th lowest
Educational attainment 20.5%[14]186th highest
Show more

The 81625 zip code in Craig features a typical property value of $282,845, the 10th lowest in the state.

Property values have appreciated 61.60% over the past five years, the 22nd highest increase among evaluated markets in the state. Craig homes have an affordability ratio of 4.4, the 8th most affordable in the state.

3. Grand Junction

The 81505 zip code in Grand Junction comes in at No. 3 in our ranking of residential real estate investment markets in Colorado.

πŸ”Ž Key data about Grand Junction

Data pointValueRank in state (of 852 markets)
Zip code81505N/A
InvestScore 98.53rd highest
Typical property value $459,629[15]64th lowest
Five-year appreciation 49.11%[16]61st highest
Household income $82,731[17]122nd highest
Affordability ratio 5.679th most affordable
Five-year population growth 25.6%[18]24th highest
Unemployment rate 1.2%[19]4th lowest
Property taxes $1,545[20]59th lowest
Educational attainment 40.2%[21]118th highest
Show more

With a typical property value of $459,629, Grand Junction's 81505 zip code features the 64th lowest property values in the state.

Grand Junction homes have an affordability ratio of 5.6, the 79th most affordable among the markets we evaluated.

4. Colorado Springs

The 80922 zip code in Colorado Springs ranks No. 4 among Colorado's residential real estate investment markets.

πŸ”Ž Key data about Colorado Springs

Data pointValueRank in state (of 852 markets)
Zip code80922N/A
InvestScore 98.44th highest
Typical property value $454,252[22]61st lowest
Five-year appreciation 48.56%[23]64th highest
Household income $102,807[24]64th highest
Affordability ratio 4.411th most affordable
Five-year population growth 4.4%[25]100th highest
Unemployment rate 4.3%[26]105th lowest
Property taxes $1,386[27]44th lowest
Educational attainment 41.1%[28]110th highest
Show more

Property values in Colorado Springs's 80922 zip code have seen the 64th highest increase among evaluated markets in the state, with an appreciation of 48.56% over the past five years.

Colorado Springs's affordability ratio of 4.4 makes it the 11th most affordable among the 852 markets we evaluated.

5. La Junta

The 81050 zip code in La Junta rounds out our top five residential real estate investment markets in Colorado.

πŸ”Ž Key data about La Junta

Data pointValueRank in state (of 852 markets)
Zip code81050N/A
InvestScore 98.15th highest
Typical property value $149,072[29]2nd lowest
Five-year appreciation 56.71%[30]38th highest
Household income $52,195[31]38th highest
Affordability ratio 2.9most affordable
Five-year population growth 5.9%[32]91st highest
Unemployment rate 5.9%[33]172nd lowest
Property taxes $511[34]3rd lowest
Educational attainment 19.1%[35]192nd highest
Show more

Property values in La Junta's 81050 zip code rose 56.71% over the last five years, ranking the city 38th highest among evaluated markets in Colorado.

La Junta homes have an affordability ratio of 2.9, the most affordable among the markets we evaluated.

How we rank residential real estate markets in Colorado

We evaluated 852 markets on eight metrics, and then assigned an InvestScore based on their weighted and combined rankings. Each market corresponds to a specific zip code in Colorado.

What is InvestScore?

InvestScore is a score on a scale of 0 (worst in state) to 100 (best in state) that estimates the residential real estate investment potential of a given market. It takes into account a suite of key data points for each city.

  • Typical property value: This measures the typical home value in this zip code, according to the Zillow Home Value Index. It reflects the typical value for homes in the 35th to 65th percentile range, including all homes, with the numbers smoothed and seasonally adjusted. We prefer lower property values, which indicate both more room for growth and a greater ease of purchase. We assign a weight of 20% to typical property values.
  • Property value appreciation: This measures how much property values have increased in the area over the past five years, according to the Zillow Home Value Index. We prefer a higher appreciation, as it indicates better returns on housing. However, past performance isn't indicative of future results. We assign a weight of 20% to property value appreciation.
  • Median household income: This is the inflation-adjusted median household income in the zip code, according to U.S. Census American Community Survey data. We prefer a higher household income, as it indicates local residents have more income to spend on housing. We assign a weight of 10% to median household income. We assign a weight of 10% to median household income.
  • Affordability ratio: This is the ratio of the typical home value to the median household income in the area. A lower ratio is better because it means more households can afford a home, which indicates higher demand. We assign a weight of 15% to the affordability ratio.
  • Population growth: This is how much the area's population has grown over the past five years, according to U.S. Census estimates. Higher is better, as it indicates residents are moving into the area at a rapid clip. We assign a weight of 10% to population growth.
  • Unemployment rate: This is the unemployment rate in the area, according to U.S. Census data. We prefer a lower rate, as it indicates the availability of steady employment in the area, meaning residents will find it much easier to afford homes. We assign a weight of 15% to unemployment rate.
  • Property tax: This is the median real estate property tax paid in the area, according to U.S. Census estimates. We assign a weight of 10% to property tax.
  • Educational attainment: This is the percentage of residents in the area that have obtained a bachelor's degree or better, according to U.S. Census estimates. We prefer a higher rate because it indicates  local residents who have higher earning potential and thus should be able to afford homes. We assign a weight of 15% to educational attainment.

Disclaimer: The information contained in this article isn't intended as, and shall not be understood or constituted as, financial advice. The information in this article isn't a substitute for financial advice from an investment professional or real estate agent who is aware of the facts and circumstances of your financial situation or the specifics of any individual property.

Article Sources

[1] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[2] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[7] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[8] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[9] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[14] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[15] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[16] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[21] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[22] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[23] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[28] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.
[29] Zillow – "Zillow Home Value Index". Updated March 31, 2024.
[30] Zillow – "Zillow Home Value Index, difference over last five years". Updated March 31, 2024.
[35] U.S. Census – "U.S. Census Table S1501 - Educational Attainment 2018-2022". Updated 2018-2022.

Authors & Editorial History

Our experts continually research, evaluate, and monitor real estate companies and industry trends. We update our articles when new information becomes available.

Better real estate agents at a better rate

Enter your zip code to see if Clever has a partner agent in your area
If you don't love your Clever partner agent, you can request to meet with another, or shake hands and go a different direction. We offer this because we're confident you're going to love working with a Clever Partner Agent.