Learn how to conduct different types of real estate analysis to buy the most lucrative traditional and Airbnb investment properties in the most profitable locations for maximum return on investment. In this section of our Investor Blogs, we will walk you through comparative market analysis (CMA), real estate market analysis, and investment property analysis to teach you how to find the top locations for real estate investments in the US housing market and how to search for profitable properties in your location of choice. This is your complete guide on mastering the art of analyzing real estate properties in order to always land the best deals, with or without an agent, even in hot buyer’s markets.
The time has come to expand your real estate portfolio with a property in the State of Colorado. And a smart real estate investment is a great way to create another income stream. Denver, Greeley, Fort Collins, and Boulder real estate markets are all great places that you can enter with a solid real estate investment strategy. These days, experts predict that the 2022 US housing market will keep hitting record highs.
You can go with long-term or short-term rentals that can get you some positive cash flow. And while the options to buy a property are limited, there are still several windows of opportunities. Are you a resident looking for a property to rent on Airbnb or an out-of-state investor looking for a second home or a vacation home? Regardless, you need to know the current state of the housing market and the Colorado housing market forecast 2022.
Colorado Real Estate Market Overview
In 2020 and 2021, the real estate market saw low inventory, heightened demand, and a rise in Colorado real estate prices. The spike in demand began in 2020 when a huge number of people opted for remote work. With a large chunk of the population forced to stay indoors, many Colorado residents decided to move into larger houses to accommodate their new lifestyle.
The high demand and low inventory led to a price rise. But because of such high demand, the Colorado real estate market was one of the best when it comes to investing and making money in real estate. Colorado is deemed as:
- The third-best state for low property taxes
- The eighth-best state for high Airbnb income
- The eighth-best state for high traditional rental income
Our Colorado housing market forecast 2022 shows that the economy is expected to fully recover and get back to its pre-pandemic levels. In September 2021, economic activity returned to its pre-pandemic high, and it is projected that the economy will continue to grow and expand. The employment numbers are expected to grow in all industries in 2022, except the leisure and hospitality industry, which suffered most from the pandemic. Only in 2024 is the said industry expected to rebound to pre-pandemic levels.
Because of low inventory on the Colorado housing market 2022, another 48,000 single-family units and multifamily units are projected to be built this year.
2022 Colorado Real Estate Market Statistics
In 2020, the total number of single-family and patio homes was 17,337. In 2021, their sales totaled 18,159. The median pricing of single-family homes also rose statewide by 18%, while the median price for a townhome/condo rose about 10.6%.
Colorado Housing Market Indicators as of November 2021
- Median Home Value: $501,345
- Median Home Value (1-Year Forecast): +12.1%
- Median Sales Price: $526,000 (+18.8% year over year)
- 1-Year Appreciation Rate: +19.1%
- New Listings: 11,440 (-1.0% year over year)
- Days on Market: 22 (-46.3% year over year)
- Inventory of Active Listings: 8,679 (-44.5% year over year)
- Months of Supply: 1 (-54.5% year over year)
- Median Rent: $1,612 (+14.2% year over year)
- Price to Rent Ratio: 25.91
- Population: 5,758,736
- Median Household Income: $72,331
- Unemployment Rate: 6.1%
Rising Colorado real estate prices and low inventory were the two most prominent real estate performance indicators. Record price rises were driven by strong demand combined with the lack of supply of properties. The Denver metro area experienced a 16% gain, averaging at $612,274, while prices continued their 10th consecutive year of growth. With tools like Mashvisor, you can find the latest information on housing prices in Colorado and make price comparisons.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Another strong indicator of the 2022 real estate market direction is MOI (Months of Inventory), which takes both active and closed listings into account. In 2020, MOI was 1.21 on an annual average basis, while in 2021, it set a new record low of 0.56.
The Colorado housing market forecast 2022 shows it is going to appreciate by double digits this year, based on the lack of inventory and sustained demand for housing. The conforming loan ceilings in certain areas, such as the Denver metro area, have risen above applicable national conforming limits. It shows that most real estate buyers may get their hands on a $700,000 property with a 10% down payment without incurring a significantly large loan.
Drivers of the Colorado Real Estate Market 2022
To better understand what’s ahead for your real estate investment, you should understand what drives the housing market in Colorado. A real estate market driver is a principal force that positively influences a market. Whenever you see a positive industry or market trend, demand increase, and value rise, there is a market driver present.
The influences that dictate the movement of real estate markets are plenty, such as economic, political, and psychographic. Such influences are measured market drivers, and here, we will discuss the key ones:
1. Employment Opportunities
Today, there is slightly more than one job opening for every job seeker, while in pre-pandemic Colorado, there were two. However, there are still a lot of job openings in the top types of jobs. Deciding to get training and experience in those industries could secure your job position and provide better pay.
The top advertised jobs in Colorado in 2021 were:
- Retail salespersons
- Registered nurses
- Computer system engineers/architects
- Customer service representatives
- Nursing assistants
- First-line supervisors of food preparation and serving workers
- General and operations managers
- First-line supervisors of retail sales workers
- Driver/sales workers
- Heavy and tractor-trailer truck drivers
If you want to see top occupations by region, you can visit the Colorado Labor Market Information database:
- Registered Nurses: 3,559
- Retail Salespersons: 1,092
- Customer Service Representatives: 815
- General and Operations Managers: 688
- First-Line Supervisors of Food Preparation and Serving Workers: 644
- Managers, All other: 560
- Cooks, Restaurant: 543
- Executive Secretaries and Executive Administrative Assistants: 474
- Medical Assistants: 460
- Security Guards: 452
Also, there are plenty of vacancies in jobs such as computer programming, computer system architecture/engineering, heavy and tractor-trailer truck driving, nurse care, etc.
2. Population Growth
According to the latest US census, Colorado is growing more diverse and urban. Between 2010 and 2020, the population of Colorado grew at almost twice the rate of other states in the US. The growth is most notable in the north of Denver. Larimer, Weld, and Broomfield rank among the top five fastest-growing counties, with growth spiking at 20% or higher.
If we look at the national numbers, there has been a staggering 15% increase in population since 2010. The population now numbers 5,759,000 people. El Paso surpassed Denver and is now the largest county in the state. Denver saw a 19% increase in population during the last decade, counting 716,000 people. Greeley in the north of Colorado is the fourth fastest-growing metro area.
3. Rental Income
Commercial or rental property investors are most interested in the potential income their new investment can yield. Or, maybe a big payoff when they sell it. The income from the property is known as yield, and it represents the annual ROI (Return on Investment), not inclusive of capital growth.
People who decide to turn to commercial or rental property are after yield because the income returns promise to be higher than residential property. The reason behind it is simple – people and businesses are ready to pay more to rent a premise than the typical tenant will for a house downtown. Besides being a driver of real estate, yield is also an important indicator of the market. It is related to property value – when yields compress (or go down), values usually go up.
Below, we will discuss the top five cities in Colorado to make a real estate investment. Besides the latest data that will show you what a residence actually costs, we also took into consideration who is moving there and how living there feels. Positive net migration and the overall well-being of a city significantly affect the quality of life, which reflects on the housing market in Colorado differently.
In case you like our Colorado housing market forecast 2022, feel free to take a look at our top 10 predictions for the 2022 US housing market.
Downtown Denver, CO
Best Cities for Real Estate Investment In Colorado
Colorado’s real estate market is not showing any signs of slowing down in terms of growth. It is true that property prices are rising, but the projections and expectations of the Colorado housing market forecast 2022 are encouraging. Many Americans come to Colorado for its breathtaking beauty and growing economy. As for investors, it indicates a promising return on investment.
You’re reading this because you are showing interest in making money in real estate for what you need to educate yourself in Colorado real estate trends. Since it’s a popular US state to move to, we want to help you by presenting the five best real estate markets in Colorado and providing the necessary data. Let’s begin!
1. Denver
Denver, the state capital of Colorado, is a booming city, with a population of about 716,000. Tourists flock to the city every year for great views and activities, which means there are potential clients to rent from you. It makes Denver the right place for utilizing new real estate income opportunities, like Airbnb.
Now is the time to buy property in Denver because, right now, it’s in a buyer’s market. You can buy real estate, renovate, and either start renting or sell it.
- Listings For Sale: 42
- Median Price: $450,868
- Average Price per Square Foot: $2,985
- Average Days on Market: 60
- Walk Score: 54
2. Boulder
Many college students are looking to stay in Boulder during their studies, while, on the other hand, young professionals are settling in the city for work. This type of demographic is great for renting townhomes, houses, apartments, even on Airbnb. Boulder is an active buyer’s market and another great Colorado city.
- For-sale listings: 34
- Median Price: $1,334,350
- Average Price per Square Foot: $625
- Average Days on Market: 63
- Walk Score: 45
Over the past year, home values in Boulder rose 4.5% and are expected to increase another 2.8% during 2022.
3. Colorado Springs
Colorado Springs can really brag about its great attractions, including zoos, parks, museums, trains, restaurants, nightlife, and more. That’s what makes it a buzzing city for tourists, but also people looking to settle there because it’s also surrounded by beautiful mountains and engulfed in nature.
- For-sale listings: 255
- Median Price: $507,230
- Average Price per Square Foot: $274
- Average Days on Market: 48
- Walk Score: 28
At the moment, the 2022 real estate market in Colorado Springs is a hot seller’s market. It is in the middle of a boom and by looking at the median rents and median home prices (which are higher than the national average), it’s more of a buy-and-hold market than a market for a rental investment.
4. Greeley
The reason for Greeley’s demographic growth lies in the fact that the University of Northern Colorado is located in the city. And once the students graduate, they decide to stay and work in healthcare, renewable energy, oil and gas, and agriculture. Greeley is not quite culturally robust, like Boulder or Denver, but it is slowly establishing its own identity. It is home to a philharmonic orchestra, an impressive public art collection, a cast of local distilleries and breweries, and a designated downtown Creative District.
- For-sale listings: 78
- Median Price: $436,588
- Average Price per Square Foot: $197
- Average Days on Market: 44
- Walk Score: 55
Greeley’s accessibility to other large cities (it’s located between Denver and Fort Collins) is what makes it the top choice for renters. And it only takes one hour to get to Loveland, which is the area’s major attraction. We would give Greeley some more time to mature, and we might not need to drive south to Denver in search of fun.
5. Fort Collins
Fort Collins boasts of more than 200 miles of bike lanes, over 20 breweries, and almost 1,000 acres of public parks. Next, it is home to Colorado State University and the median age here is 29, which makes it a young city. It is expected that Larimer County and Weld County will grow by 45%, so investing in real estate in the area now might be a good idea.
- For-sale listings: 128
- Median Price: $532,183
- Average Price per Square Foot: $331
- Average Days on Market: 76
- Walk Score: 27
In terms of quality of life, you won’t need to wait for the investment to pay off. Fort Collins is one of the best places to enjoy Colorado’s laid-back culture. From enjoying the flavors of more than 70 food trucks to rafting the Cache la Poudre River, Fort Collins should definitely be on your list of potential real estate markets to invest in.
Bear in mind that the cities on this list are large cities with thousands of residents. If you’re after something different, such as a vacation rental in a remote and peaceful mountain town, there are real estate investment opportunities for that, too. The state of Colorado has it all.
Invest in the Colorado Real Estate Market With the Help of Mashvisor
The housing demand in Colorado may be higher than the supply, but there are still several windows of opportunity to get into the CO real estate market. Based on our Colorado housing market forecast 2022, the state’s got something to offer to real estate investors. We are here to provide the Colorado real estate trends, Colorado housing market forecast 2022 data, as well as tools for investment property analysis and complete market research.
With Mashvisor’s Investment Property Finder, you can scan different markets to see the locations of properties for sale, as well as how they are projected to perform and how they performed in the past. The investment property calculator tool helps you analyze each property for its investment potential in a matter of minutes. And if you want a virtual shop to look at all properties listed for sale, you can use the Property Marketplace tool.
All these tools work together to provide you with a clearer picture of what your future real estate portfolio might look like and how to optimize your real estate investment strategy.
To learn more about how we will help you make faster and smarter real estate investment decisions, click here.