The Denver, Colorado real estate market is currently one of the most stable in the nation, according to a recent ranking by SmartAsset. Boulder and Fort Collins were ranked #1 and #6, respectively.
We’ve written about the Denver housing market a lot in 2016, mainly for its inclusion in top-10 lists. For instance, back in February, the real estate information company Zillow included the Mile-High City in a list of the top 10 housing markets to watch in 2016. Denver has appeared in similar lists measuring home-price gains.
Denver Real Estate Market Among the Most Stable in U.S.
And now, here comes another top-10 list featuring the Denver real estate market. In June, the New York City-based personal finance company SmartAsset created a list of the ten best housing markets for growth and stability.
To create its list, the company “relied on two factors: the overall home price growth rate since 1991 (our growth factor) and the average odds that a homeowner in a particular market would have experienced significant price declines within the decade after buying a home (our stability factor).”
In other words, they looked backward as well as forward — as much as possible without a crystal ball, anyway. Based on their analysis, the Denver housing market was ranked as one of the most stable in the nation in 2016, and poised for continued growth.
Boulder, Colorado also made the list, appearing at #1. Fort Collins appeared at #6.
Here are the ten most stable housing markets, according to SmartAsset:
- Boulder, Colorado
- Austin-Round, Rock Texas
- Casper, Wyoming
- Bismarck, North Dakota
- Midland, Texas
- Fort Collins, Colorado
- Billings, Montana
- Missoula, Montana
- Denver-Aurora-Lakewood, Colorado
- Grand Forks, North Dakota
But Denver has had its share of ups and downs, where home prices are concerned. As the authors of the SmartAsset study pointed out: “While there has been a 270% total growth rate since 1991, the Denver-Aurora-Lakewood housing market … has seen home prices drop significantly at times during that period.”
Strong Housing Demand Lifting Home Prices
In recent years, home prices have risen steadily in the Denver real estate market. According to Zillow, the home value index for the city rose by around 10% over the last year or so, and the company’s 12-month forecast calls for another 5% growth.
Home prices tend to rise whenever there’s strong demand for housing, especially when inventory is limited by comparison. That’s exactly what we are seeing in the Mile-High City. A recent report by CoreLogic showed that the median sales price for houses and condos in the Denver real estate market rose 10.3% in May 2016, compared to the same time last year. That was the highest year-over-year increase among the nation’s largest cities, according to CoreLogic.
Population growth has a lot to do with these steady home-price gains. A lot of folks want to live in the Denver area, but there’s only so much real estate to go around (especially close to the city’s core). This creates a supply-and-demand imbalance and pushes home prices north.
According to a recent analysis by the U.S. Census Bureau, Colorado is the second-fastest growing state in the country, for population. And Denver is one of the ten fastest growing metro areas in the U.S., according to Forbes. (Chalk up another top-10 ranking.)
And what’s not to love about the Mile-High City. It has jobs, natural beauty, plenty of outdoor activities and nightlife, and recreational marijuana. No wonder it’s a mecca for the young and upwardly mobile.
Disclaimer: This story includes third-party data and assessments that are deemed reliable but not guaranteed. As a general rule, the Home Buying Institute does not make predictions or forecasts relating to the real estate market.