Did you know that the median Denver home sale price in 2022 was more than nine percent higher than in 2021?
Even with some signs indicating that the market might slow, real estate prices are still high. Prices for buying aren't the only ones rising, as rental prices have also soared.
Even when the signs look favorable, investing in real estate requires you to do your research. Some factors are market-specific, and knowledge about them is essential for wise investing.
Read on to learn five things about investing in Denver real estate.
1. What Neighborhoods Are the Richest?
Looking for real estate in neighborhoods with the highest household income makes for a safer investment. The additional amount you pay upfront is easily offset by prospective clientele who wish to live in an upscale area.
The wealthiest neighborhoods in Denver are:
- University
- Lodo
- Park Hill
- Civic Centre
- Auraria
- West Colfax
- Central East Denver
- Washington Park
- Cherry Creek
- Stapleton
2. What Neighborhoods Are the Fastest Growing?
To find a beautiful property, consider the fastest-growing Denver neighborhoods. Those on this and the richest list above are excellent places to invest.
Some of the fastest-growing neighborhoods include:
- Mar Lee
- Sloan Lake
- Fort Logan
- Highland
- Indian Creek
- Stapleton
- Hampden
3. Median Price Per Square Foot
This is something to consider for both rental properties and resales. This data could help you decide between the two investment options if you are on the fence.
4. Rental Vacancies Versus Average Days on the Market
Another way to determine whether to rent or sell is to compare the current Denver vacancy rate with the average days a property is listed on the market. The national vacancy rate for 2022 is six percent.
Comparing this value to that of the area you're looking at gives you an idea of how good this rental market is.
If you prefer the resale market, then comparing the average days on the market for the Denver area to the national average is for you. Since this is a seller's market, the current average for 2022 is low, at just 18 days.
Something could be wrong if a prospective investment has been on the market for longer than this.
5. Real Estate Laws Specific to Denver
Being knowledgeable about state and local real estate laws is essential. Some significant legislation, such as Section 8, can impact prospective buyers and renters.
Before signing any agreement, having a real estate lawyer look over the paperwork is smart.
What Else Should You Consider?
Depending on whether your investment is a resale or rental, there are other things you should consider.
If you're looking at rental units, you must hire a rental management company. For a resale, you should examine comps in the area and see the amenities buyers expect.
Are You Ready To Make an Investment in Denver Real Estate?
Now that you know five things about investing in Denver real estate, what are you waiting for? Whether you rent or buy, there are plenty of considerations to make. Seeking outside assistance is always prudent.
If you're ready to get started, contact us for all your investment needs.
