Denver home prices have been on the rise at a rate of 4% year-over-year. The Mile High City is one of the most expensive real estate markets in the United States. However, if you are able to buy a house in the city, Denver has proven you will get value for your money.
Take a look at the top reason why you should invest in Denver:
Jobs are a big reason why people are moving to Denver. The city has an unemployment rate of less than 3 percent, which is well below the national average. This is the reason why Denver remains one of the best places not only for people who are migrating from other cities and states within the United States, but also from other countries.
One of the biggest attractions of Denver is its closeness to the Rockies. Some other tourists’ spots include the famous Denver Zoo and the Denver Botanical Gardens. In 2017, the city welcomed a record 31.7 million tourists – many of which loved to rent out a house or an apartment for a short time rather than living at a hotel. The city also hosts about 80 conventions each year.
Whether you are there for a week of business or are working a contract job in the tourism industry, the demand for short-term rentals can be very lucrative for real estate investors.
A lot of people invest blindly into housing markets only to see their money going down the drain when the market slumps. However, it is often observed that areas that are reserved for redevelopment will almost always go up. Denver is known for its various redevelopment areas. Currently, redevelopment is being planned around Elitch Gardens, which is a great opportunity for investors.
Return on Investment
The median home price for Denver is currently a little below $400,000. Although this may seem like a huge price, this is actually pretty cheap for people coming in from California. However, the huge number of Californians coming in is pricing out Denver locals from the housing market. Median monthly rent in Denver, including for one-bedroom apartments, is around 1,100. For larger condos and houses, investors can get much more. With a 3-bedroom single family home, an investor can receive over $2,000 per month which translates to great ROI.
The laws of Denver are quite landlord friendly. Investors can quickly give eviction notice for non-payment of rents or violation of leasing contracts. There is also no limit to late fees. After you have given a formal notice to the tenant, they have 72 hours to correct the issue or empty your property. In case of non-compliance, you can take them to court. If the court sides with you, the tenant has 48 hours to evict before they are forced out by the sheriff.
Because of its diverse colleges, there is a constant stream of students who choose to rent properties. After they have graduated, they may still live in a rented apartment until they are financially secure enough to buy a house.
Denver has some of the best colleges, including the American Sentinel University in Aurora, Bel Rea Institute of Animal Technology, Colorado Christian University, and the Colorado School of Healing Arts.
According to US News and World Report, Denver is the third best place to live in the United States right now. It also ranked very high on jobs, desirability and quality of life, and although all these things combined weren’t as big a draw as what other cities provide, they still remain a large factor.