The housing market in the Denver metro area has steadily risen since around 2012. It is somewhat unique from other areas in the U.S., with the median home value in the Northeast raising by only 1.2%. There are multiple reasons that so many people are moving into the area, but you still have to wonder how long it can last.
This article from the Denver Business Journal provides some stats on the price increase in the metro Denver area:
Home resale price gains hold steady in metro Denver; national prices reach new high
Denver’s yearly price increase in September was well ahead of the 5.5 percent national gain and the 5.1 percent average rise for 20 big cities that the Case-Shiller report tracks most closely.
Only two cities saw price growth greater than Denver’s across the year: Seattle (up 11 percent) and Portland (up 10.9 percent). Those cities and Denver have shown the highest year-over-year price increases among the 20 cities tracked by Case-Shiller for each of the last eight months.
The downtown area in Denver is growing like crazy. Every old warehouse is being converted into residential or commercial space. Even a building that is dilapidated is bringing in a ridiculous price.
Some of the projects that are ongoing in downtown area are shown in this video:
Many of these construction projects were started in May 2016 but are still in the works. The amount of money being spent to build and/or upgrade is $2.5 billion, proving the demand for housing and office space is high. Is there an end in sight to this growth trend?
The Denver Post says that the development is showing signs of diminishing, but is it enough to cause the Denver housing bubble to burst:
$2.5 billion in downtown Denver construction underway or being planned – The Denver Post
Downtown Denver’s development boom is showing little sign of slowing, with $2.47 billion in projects currently under construction or in the planning process.
Eighteen commercial, residential and civic projects were underway as of this month, and another 14 were being planned, according to the Downtown Denver Partnership’s annual State of Downtown Denver report released Tuesday.
Combined, the projects comprise some 1,230 new hotel rooms, 4,592 residential units and 2.77 million square feet of office space being added to Denver’s downtown core.
See the full post here: $2.5 billion in downtown Denver construction underway or being planned – The Denver Post
In March of this year, News & World Report recognized Denver as the best city to live in America. In addition, Colorado is in the top 10 of the best states to make a living in 2016, according to the following graph by MoneyRates.com. You can imagine that these type of accolades are pushing the real estate market up and broadening the Denver housing bubble:
Some people say that Denver’s real estate boom isn’t a bubble, but others feel that there’s no doubt it is. It is such a beautiful place to live and work, so I’m not surprised a lot of people want to live in our progressive state. Eventually, though, with the mountains on one side and the plains on the other, you can probably guess which direction it will have to expand. The foothills are already crowded, so will the building head east?