Colorado is a state located in the western region of the United States, known for its stunning natural beauty, outdoor recreational opportunities, and booming economy. The state’s real estate market has been thriving in recent years, with a growing number of people choosing to call Colorado home. In this article, we will discuss why Colorado real estate rocks and what makes it an attractive market for buyers and investors.
One of the main reasons why Colorado real estate rocks is its steady appreciation. According to the Colorado Association of Realtors, the state’s median home price increased by 19.7% from 2019 to 2020. This growth rate outpaced the national average and demonstrates the strong demand for homes in Colorado.
The state’s robust economy is a significant driver of this appreciation. Colorado has a diverse economy, with strong sectors in technology, energy, and outdoor recreation. The state’s low unemployment rate and high job growth rate make it an attractive destination for people seeking employment opportunities.
This economic stability translates into a strong real estate market, with homes and properties consistently appreciating in value over time. This makes Colorado an attractive market for buyers and investors looking for long-term growth potential.
Outdoor Recreational Opportunities
Colorado is known for its stunning natural beauty, offering residents and visitors access to some of the best outdoor recreational opportunities in the country. From skiing and snowboarding in the winter to hiking and mountain biking in the summer, Colorado has something for everyone.
This natural beauty and outdoor recreation opportunities are a significant draw for people looking to buy property in the state. Many buyers are willing to pay a premium for homes with mountain views or easy access to hiking trails and ski slopes.
Additionally, the state’s outdoor recreation industry is a significant contributor to its economy. In 2019, outdoor recreation generated $62.5 billion in consumer spending in Colorado, supporting over 500,000 jobs. This industry growth is expected to continue, further fueling the state’s real estate market.
Booming Tech Industry
Colorado’s tech industry is another significant driver of its real estate market. The state has a thriving tech sector, with companies such as Google, Facebook, and Amazon opening offices in the state in recent years.
The tech industry has created a demand for highly-skilled workers, attracting a younger demographic to the state. These workers often have high salaries and are willing to pay a premium for homes in desirable locations.
This influx of highly-skilled workers has also spurred the growth of Colorado’s startup scene. The state is home to many successful startups, such as Ibotta, Guild Education, and Sphero. These startups are attracting investors from around the world and creating new opportunities for real estate investors and developers.
Low Property Taxes
Colorado has some of the lowest property taxes in the country, making it an attractive destination for buyers looking to save on their overall housing costs. The state’s average property tax rate is 0.55%, well below the national average of 1.07%.
Low property taxes can have a significant impact on the overall cost of owning a home. Buyers who are on a tight budget or looking to maximize their investment may find Colorado’s low property taxes appealing.
Strong Rental Market
Colorado’s strong rental market is another reason why the state’s real estate rocks. With a growing population and a robust economy, there is a strong demand for rental properties in the state.
According to RentCafe, the average rent in Denver, Colorado’s largest city, increased by 2.1% from 2019 to 2020. This growth rate outpaced the national average and demonstrates the strong demand for rental properties in the state.
Investors looking for rental properties in Colorado may find that the state’s strong rental market provides them with an opportunity for long-term growth and stability.