Denver Real Estate Market Analysis

Denver, dubbed the Mile High City, is the largest city and capital of the state of Colorado. It is located in the South Platte River Valley, east of the Front Range of the Rocky Mountains. With a population of over 716,500 people, Denver is the 19th most populous city in the U.S. Denver is part of the Denver-Aurora-Lakewood Metropolitan Statistical Area, the country’s 19th largest, with over 2.9 million residents. 

The city is expected to experience population growth that is well above the national average thanks to a strong net migration. This, along with the fact that a large percentage of the population is between the ages of 25 and 44, help boost the economic activity in Denver. And with more than half (51% according to NeighborhoodScout) of the city’s residents living in rental properties rather than owning their own homes, investing in a Denver rental property is a great option. 

The Mile High City is the financial, commercial, and transportation capital of the Rocky Mountains region. It ranked  #4 on Forbes’ list of “Best Places for Business and Careers” last year. Due to its relatively central geographic position within the U.S., Denver has become a hub for storage and distribution of goods and services to the American West, as well as some large cities of the Midwest. Its location just east of the mineral-rich Rocky Mountains has also drawn mining and energy companies to the area, making the energy industry a major contributor to the economy. The Newmont Mining Corporation, the 2nd largest gold producer in North America and one of the largest in the world, has its headquarters in Denver.  Denver’s geographic location also benefits the telecommunications industry; it is located within the Mountain Time Zone, which allows communication with other continents on the same business day.

The U.S. government has a strong presence in the city and is in fact the largest employer in the Denver metro area. Many federal agencies and companies related to U.S. aerospace and defense are based in Denver, attracting a particularly young workforce seeking employment in the city. Denver is home to other large corporations employing workers in a range of fields such as technology, manufacturing, air transportation, construction, finance, education, retail, healthcare, food service, and brewing. The multiple economic sectors and the strong economic growth make the city a good location for those considering to invest in the Denver real estate market, especially when it comes to long-term rental properties.  

The Denver housing market was named the 8th most important U.S. Market to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. According to the report, real estate investment and development activity is robust in nearly all property types in the Denver market.