Experts predict Aspen real estate prices and values will only continue to rise, so why do we still say it’s worth it? Continue reading to find out why we recommend investing in Aspen long term rentals.
We all know that the Aspen real estate market is one of the most expensive markets in the country. These high prices could very easily scare away first-time investors, but what’s keeping Aspen real estate investors confident? How do investors know that these luxury real estate properties will hold their value?
This market was actually ranked third worldwide in luxury real estate appreciation back in 2017. That’s got to be a good indicator for the type of market value Aspen real estate properties hold. But let’s give you Mashvisor’s latest summary for the Aspen housing market 2018 so you can see the numbers for yourself.
Aspen Real Estate Market 2018
Below is data provided by Mashvisor’s investment property calculator for Aspen real estate. Let’s see how Aspen investment properties have been performing lately.
Aspen Real Estate Market: City-Level Data
- Median Property Price: $2,102,884
- Price per Square Foot: $1,359
- Monthly Traditional Rental Income: $15,913
- Traditional Cap Rate: 5.09%
- Traditional Cash on Cash Return: 5.09%
Let’s get the obvious out of the way. Yes, that is a very high median property price, but check out that return on investment. Long term rentals in the Aspen real estate market have yet again proven their worth. For those real estate investors looking for profitable luxury real estate investments in the Colorado real estate market, Aspen real estate is where the money’s at.
Related: The Colorado Real Estate Market 2018: Interview with Expert Joe Mivshek
Why Aspen Real Estate Is So Expensive
Making money in real estate depends on the type of deal you get. You need to understand the pay off of value. In real estate investing, everything happens for a reason. Why are Aspen real estate properties priced so high?
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Decline in Inventory
This decline in inventory has led the Aspen real estate market into a seller’s market and, as demand still continues, the sellers have the upper hand. There is a continued decline in inventory because quite frankly, there isn’t space for any new inventory. What many people don’t realize is that Aspen is completely surrounded by national forest. In fact, 83% of Pitkin County is federal public land and can never be developed. So the bottom line is, demand is high, and inventory is going to stay low. Aspen real estate prices are only going to get higher as demand increases.
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It’s a Luxury Market
Aspen is one of the country’s most high-end ski destinations. This fact is very clearly reflected in Aspen’s luxury real estate market. The average luxury property size itself is even increasing in Aspen- increasing 27.2% to 8,781 square feet. The price per square foot has also increased 9.2% since last year. Although prices are high, sales are still soaring. This luxury market has attracted many A-list homeowners and continues to be a hot market.
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The City of Aspen is More Than Just a Ski-Resort
It’s a known fact that Aspen has world-class skiing on its beautiful four mountains. However, a less known fact is that Aspen actually collects more sales tax dollars in the summer than in the winter. Locals all share the same thought; they originally visited Aspen for the winters but stayed for the summers. The expensive city isn’t pushing them away, it’s drawing them in. This just goes to show that Aspen is more than just a winter vacation spot and people are searching for long term rentals to stay in.
Related: How to Make Money by Investing in Luxury Properties
How to Find Affordable Aspen Investment Properties
So after all this has been said and done, is it actually possible to find affordable investment properties in the Aspen real estate market 2018? Mashvisor is here to tell you yes! Just because the median property price is over 2 million, that doesn’t mean all Aspen real estate is that highly priced.
You can still invest in Aspen real estate if your investment property financing can’t cover the high-end luxury properties. The Aspen real estate market is full of surprising investment opportunities. After all, investing in real estate can’t be successful if you don’t find an investment property suited to your goals. If you’re not going after the expensive properties, you don’t have to invest in them in this market just to get a good ROI. By using Mashvisor’s Property Finder Tool, you can find much more affordable Aspen real estate properties in a matter of minutes.
Property Finder Tool
This is a digital tool primarily used to find investment properties based on your preferences and search criteria. It’s very simple and straightforward to use. For example, say you’re searching for your next real estate investment in Aspen. Include the city of Aspen in your search and then continue to adjust the search to your preferences. You can modify the search results based on miles (range of search), rental strategy (traditional or Airbnb), property type, and most importantly, your budget. And with Mashvisor’s Property Finder Tool, you can always be sure you’re finding the best investment properties.
We utilize a wide range of data comps, analytics, and metrics to provide real estate investors with a list of high return on investment properties for sale. Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes!
Learn More: How to Find Investment Properties Using a Property Finder Tool
Aspen Real Estate Properties Listed for Sale
We’ve used our Property Finder Tool to locate a couple of affordable top-performing Aspen investment properties currently listed for sale for you to check out. Keep in mind, these are properties categorized as affordable for the Aspen real estate market. So they’re not necessarily “cheap” properties, but they’re as low as you can get for a profitable investment in Aspen.
Potential Investment #1
- Listed Property Price: $495,000
- Property Type: Condo/Coop
- 706 Square Feet
- Comparable Monthly Traditional Rental Income: $5,593
- Traditional Cash on Cash Return: 8.41%
- Traditional Occupancy Rate: 89%
Potential Investment #2
- Listed Property Price: $589,900
- Property Type: Condo/Coop
- 745 Square Feet
- Comparable Monthly Traditional Rental Income: $8,878
- Traditional Cash on Cash Return: 11.98%
- Traditional Occupancy Rate: 89%
Potential Investment #3
- Listed Property Price: $736,000
- Property Type: Condo/Coop
- 833 Square Feet
- Comparable Monthly Traditional Rental Income: $8,878
- Traditional Cash on Cash Return: 9.28%
- Traditional Occupancy Rate: 89%
Those were three properties considered on the cheaper end of Aspen real estate. However, if you’re looking for an Aspen investment property on the higher end for some serious cash flow, we’ve picked out just one of the many profitable properties listed on our Property Finder.
Potential Investment #4
- Listed Property Price: $1,875,000
- Property Type: Single Family Residential
- 2,486 Square Feet
- $754 per Square Foot
- Comparable Monthly Traditional Rental Income: $33,293
- Traditional Cash on Cash Return: 14.86%
- Traditional Occupancy Rate: 89%
So as you can see, this property is more expensive than the other three, but it has quite the generous monthly rental income to make up for it. In real estate investing, you’ll get what you’re willing to give. For more details on all four properties mentioned and others in the Aspen real estate market, click here.
Related: Making Money in Real Estate in Expensive Cities