2017 was an extremely strong year for the Denver real estate market and investors will be especially thrilled to hear that the market continues its hot streak in 2018! So, if you are looking for a new city to diversify your real estate investment portfolio, you should definitely consider investing in Denver, CO.
Why Invest in Denver Real Estate?
Denver real estate has a population close to 2.8 million residents. Moreover, according to the Economic Development Corporation, Metro Denver, this population is expected to grow to 3.3 million by 2020. This is great news for Denver real estate investors, especially those investing in single-family and multi-family homes for rent.
With a growing population, Denver real estate investors have a large pool of rental population and, thus, are guaranteed to find tenants to rent their investment properties. Furthermore, demand for real estate investing will increase, providing new investment opportunities for real estate investors in the Denver real estate market!
Strong Job Market
The Denver Business Journal ranked Colorado as #1 for job opportunities, offering an unemployment rate of less than 3%! This strong job growth leads to increasing rents which fuel the demand for real estate investing.
This is great for Denver real estate investors where almost half of the population rents. This offers real estate investors a large pool of potential tenants who are in a solid job market meaning they are financially able to pay their rents. In addition, Denver real estate investors can charge more rent, leading to a higher cash flow and return on investment.
Denver is known for its outdoor entertainment opportunities that are also a major attraction for tourists! In fact, over 30 million tourists visited Denver in 2016. Other major attractions in the city include Denver Zoo, Denver Botanic Gardens, Mount Evans, and Rocky Mountain National Park. The tourism industry made Denver one of the best real estate markets for those investing in short-term Airbnb rentals. However, one thing Denver real estate investors should keep in mind is the Airbnb laws and regulations in the city.
A Quick Summary of Denver Real Estate Market
- Median Property Price: $474,894
- Traditional Rental Income: $2,103
- Airbnb Rental Income: $305
- Traditional Cash on Cash Return: 2.64%
- Airbnb Cash on Cash Return: 0.37%
- Traditional Cap Rate: 2.64%
- Airbnb Cap Rate: 0.37%
Click here to start looking for and analyzing different investment properties in Denver, Co!
Where to Invest in Denver Real Estate
- Central Business District
- Union Station
- Capitol Hill
- North Capitol Hill
- Congress Park
- Chaffee Park
- Gateway – Green Valley Ranch
- Virginia Village
- Athmar Park
For more in-depth information regarding these neighborhoods, read this: 2018 Denver Real Estate Market: The Best Neighborhoods!
Real estate investing can be your way to riches and fortune as long as you invest in the best locations! Denver real estate is one of the top markets for a real estate investor looking to buy an investment property and start a real estate investing business. To find the best investment property in these neighborhoods, use Mashvisor’s Investment Property Finder!
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