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Denver, dubbed the Mile High City, is the largest city and capital of the state of Colorado. It is located in the South Platte River Valley, east of the Front Range of the Rocky Mountains. With a population of over 716,500 people, Denver is the 19th most populous city in the U.S. Denver is part of the Denver-Aurora-Lakewood Metropolitan Statistical Area, the country’s 19th largest, with over 2.9 million residents. 

The city is expected to experience population growth that is well above the national average thanks to a strong net migration. This, along with the fact that a large percentage of the population is between the ages of 25 and 44, help boost the economic activity in Denver. And with more than half (51% according to NeighborhoodScout) of the city’s residents living in rental properties rather than owning their own homes, investing in a Denver rental property is a great option. 

The Mile High City is the financial, commercial, and transportation capital of the Rocky Mountains region. It ranked  #4 on Forbes’ list of “Best Places for Business and Careers” last year. Due to its relatively central geographic position within the U.S., Denver has become a hub for storage and distribution of goods and services to the American West, as well as some large cities of the Midwest. Its location just east of the mineral-rich Rocky Mountains has also drawn mining and energy companies to the area, making the energy industry a major contributor to the economy. The Newmont Mining Corporation, the 2nd largest gold producer in North America and one of the largest in the world, has its headquarters in Denver.  Denver’s geographic location also benefits the telecommunications industry; it is located within the Mountain Time Zone, which allows communication with other continents on the same business day.

The U.S. government has a strong presence in the city and is in fact the largest employer in the Denver metro area. Many federal agencies and companies related to U.S. aerospace and defense are based in Denver, attracting a particularly young workforce seeking employment in the city. Denver is home to other large corporations employing workers in a range of fields such as technology, manufacturing, air transportation, construction, finance, education, retail, healthcare, food service, and brewing. The multiple economic sectors and the strong economic growth make the city a good location for those considering to invest in the Denver real estate market, especially when it comes to long-term rental properties.  


The Denver housing market was named the 8th most important U.S. Market to Watch by PWC in its annual Emerging Trends in Real Estate: United States and Canada 2019 report. According to the report, real estate investment and development activity is robust in nearly all property types in the Denver market. 

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Denver  Real Estate Investment Performance
Facts and Market Trends in Denver
Homes For Sale
167
Airbnb Properties
1,862
Rental Properties
2,095
Traditional Vacancy rate
3.80%
Airbnb Occupancy Rate
69.56%
Mashmeter
64.65%
Median Price
$445,098
Median Rent Price
$2,030
Price/sqft
$277
Median Days on Market
45
Price to Rent Ratio
19.2
Average Cap Rate
Airbnb
3.48%
Traditional
2.04%
Average Rental Income
Airbnb
$2,960
Traditional
$1,938
 
Median Household Income
$76,643
Population
619,968
Transportation in Denver
61 / 100
Somewhat Walkable
47 / 100
Some Transit
71 / 100
Very Bikeable
Denver  Rent Prices
RENTAL STRATEGY STUDIOS 1 ROOM 2 ROOMS 3 ROOMS 4 ROOMS
Airbnb$2,144$2,127$2,471$3,611$4,599
Traditional$1,058$1,231$1,668$2,298$2,546
Denver, CO - Homes for Sale - Newly Listed
$437,263
MLS
480 N Gilpin St
Denver, CO 80218
Country Club
Other
2 beds1 baths973 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 2.48%
$487,000
MLS
4807 Lisbon St
Denver, CO 80249
Gateway - Green Valley Ranch
Single Family Residential
4 beds3 baths3,192 sq.ft.
CAP RATE
Trad. 0.83%Airbnb 3.78%
$619,000
MLS
3629 N Josephine St
Denver, CO 80205
Cole
Single Family Residential
2 beds2 baths860 sq.ft.
CAP RATE
Trad. 0.75%Airbnb 1.51%
$438,000
MLS
2826 S Glencoe St
Denver, CO 80222
University Hills
Single Family Residential
3 beds1 baths1,224 sq.ft.
CAP RATE
Trad. 1.43%Airbnb 3.66%
Top Performing Denver Properties
$273,011
MLS
4129 Dunkirk Ct
Denver, CO 80249
Gateway - Green Valley Ranch
Single Family Residential
4 beds4 baths1,704 sq.ft.
CAP RATE
Trad. 2.70%Airbnb 7.98%
$174,895
MLS 877748
12108 Melody Dr #104
Denver, CO 80234
Chaffee Park
Condo/Coop
2 beds1 baths900 sq.ft.
CAP RATE
Trad. 3.04%Airbnb 7.91%
$323,659
MLS
2065 Uinta St
Denver, CO 80238
East Colfax
Other
3 beds2 baths1,185 sq.ft.
CAP RATE
Trad. 1.44%Airbnb 7.91%
$218,697
MLS
9064 Madeleine St
Denver, CO 80260
Chaffee Park
Single Family Residential
3 beds2 baths1,484 sq.ft.
CAP RATE
Trad. 5.01%Airbnb 7.24%
Recently Sold Homes in Denver, CO
$649,900
MLS 3268269
2086-2090 South Pearl Street
Denver, CO 80210
Rosedale
Multi Family
4 beds2 baths1,957 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$1,900,000
MLS 3415188
2425 South Broadway
Denver, CO 80210
Rosedale
Multi Family
4 beds4 baths18,818 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$299,900
MLS 4776678
2086 South Pearl Street
Denver, CO 80210
Rosedale
Multi Family
2 beds1 baths877 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
$300,000
MLS 8974400
1177 South Alton Street #B
Denver, CO 80247
Windsor
Condo/Coop
2 beds2 baths1,046 sq.ft.
CAP RATE
Trad. N/AAirbnb N/A
Property Value Changes and Real Estate Appreciation in the Denver Housing Market

The Denver real estate market has witnessed a strong real estate appreciation in recent years. Since Q1 of 2000, Denver properties have experienced a total appreciation of 122.59% according to NeighborhoodScout, which is an average annual home appreciation rate of 4.24%.

Zillow reports that Denver property values have gone up 2% over the past year but are predicted to fall 0.1% within the next year. Denver housing prices are starting to cool down due to a growing supply of residential listings on the market. 

The Denver housing market is currently a buyer’s market. The last couple of months saw more homes up for sale in the Denver area than any other month in the past five years, which is good news for prospective investors who now have more options to choose from when buying an investment property.

Denver, CO Top Multi Family Homes
$190,000
MLS 5236586
8335 Fairmount Drive #202
Denver, CO 80247
Windsor
Multi Family
2 beds2 baths948 sq.ft.
CAP RATE
Trad. 4.41%Airbnb N/A
$295,000
MLS 4778038
1419 Lipan Street #4
Denver, CO 80204
Lincoln Park
Multi Family
2 beds1 baths827 sq.ft.
CAP RATE
Trad. 2.11%Airbnb N/A
$775,000
MLS 886245
1237 N Pearl St
Denver, CO 80203
Capitol Hill
Multi Family
4 beds3 baths2,532 sq.ft.
CAP RATE
Trad. 2.08%Airbnb N/A
$510,000
MLS 5233875
1633 South Trenton Street
Denver, CO 80231
Indian Creek
Multi Family
3 beds4 baths2,713 sq.ft.
CAP RATE
Trad. 2.07%Airbnb N/A
Homes Below Median Price in the Denver, CO Real Estate Market
$273,011
MLS
4129 Dunkirk Ct
Denver, CO 80249
Gateway - Green Valley Ranch
Single Family Residential
4 beds4 baths1,704 sq.ft.
CAP RATE
Trad. 2.70%Airbnb 7.98%
$174,895
MLS 877748
12108 Melody Dr #104
Denver, CO 80234
Chaffee Park
Condo/Coop
2 beds1 baths900 sq.ft.
CAP RATE
Trad. 3.04%Airbnb 7.91%
$323,659
MLS
2065 Uinta St
Denver, CO 80238
East Colfax
Other
3 beds2 baths1,185 sq.ft.
CAP RATE
Trad. 1.44%Airbnb 7.91%
$218,697
MLS
9064 Madeleine St
Denver, CO 80260
Chaffee Park
Single Family Residential
3 beds2 baths1,484 sq.ft.
CAP RATE
Trad. 5.01%Airbnb 7.24%
Denver Airbnb Growth and Regulations

The Denver Airbnb business has experienced major growth in recent years. In 2018, nearly 477,100 Airbnb guests stayed at Denver short-term rentals, bringing a total revenue of $74.6 million to the local Airbnb hosts. This represents about 25% of Colorado’s total Airbnb income. 

Denver, however, has strict regulations governing short-term rentals. The use of a non-owner occupied Airbnb investment property is illegal. Only the host’s primary residence can be used as a short-term rental, i.e. the owner of the property must be on site during the guests’ stay.

All homeowners planning on renting their primary residence to guests for a period of less than 30 consecutive days must obtain a Short-Term Rental business licence that will need to be renewed annually for a fee of $25. But first, a Lodger’s Tax ID must be obtained in order to be eligible for the business licence; it costs $50 and must be renewed every two years at that same fee.  

There are also a number of other Airbnb regulations set in place by the city of Denver, including many operational requirements. Hosts must hold a minimum of $1 million worth of liability insurance for the property and notify both their insurer and homeowner associations that they are using their home as a short-term rental; the Airbnb platform, however, provides insurance for its operators, offering at least $1 million worth of coverage. It is important for Airbnb Denver investors to know that it is the city’s right to revoke, sanction or deny a Short-Term Rental licence or application if its requirements are not maintained, or if a rental property negatively affects the public health, safety or welfare of a neighborhood.

Denver, CO Top Airbnb Homes
$114 per night
Entire home/apt · 3 beds
Walk to Everything Downtown- 2BR
776
$136 per night
$110 per night
Entire home/apt · 2 beds
LoHi Secret garden at the Mulberry Cottage
566
$118 per night
Entire home/apt · 1 bed
Modern 1BD/1BR in DT Denver (LODO)
468
Denver, CO Homes for Rent
$1,325
$1,350
$1,350
$1,950
Denver, CO Open Houses
Open 12 PM to 4 PM
$639,000
MLS 6499677
1316 Stuart Street
Denver, CO 80204
West Colfax
Townhouse
4 beds4 baths1,834 sq.ft.
CAP RATE
Trad. 0.95%Airbnb 2.94%
Open 11 AM to 1 PM
$350,000
MLS 9143819
1057 North Emerson Street #B
Denver, CO 80218
Speer
Condo/Coop
2 beds1 baths1,034 sq.ft.
CAP RATE
Trad. 0.53%Airbnb 2.59%
Open 11 AM to 1 PM
$325,000
MLS 9647674
9637 E. 5th Ave. #202
Denver, CO 80230
Lowry Field
Condo/Coop
2 beds2 baths1,310 sq.ft.
CAP RATE
Trad. 2.33%Airbnb 3.04%
Open 12 PM to 3 PM
$430,000
MLS 3747786
9002 E 24th Place #102
Denver, CO 80238
East Colfax
Condo/Coop
2 beds2 baths1,579 sq.ft.
CAP RATE
Trad. 0.12%Airbnb 1.17%
Best Denver Neighborhoods for Buying Investment Property
86%
Mashmeter
property price
$290,000
Median
cap rate
8.94%
Traditional
16.08%
Airbnb
rental income
$2,161
Traditional
$3,887
Airbnb
homes for sale
2
occupancy rate
76%
Airbnb
84%
Mashmeter
property price
$925,000
Median
cap rate
3.97%
Traditional
5.40%
Airbnb
rental income
$3,063
Traditional
$4,165
Airbnb
homes for sale
1
occupancy rate
73%
Airbnb
86%
Mashmeter
property price
$520,000
Median
cap rate
4.62%
Traditional
7.91%
Airbnb
rental income
$2,002
Traditional
$3,428
Airbnb
homes for sale
0
occupancy rate
76%
Airbnb
55%
Mashmeter
property price
$1,250,000
Median
cap rate
1.88%
Traditional
3.72%
Airbnb
rental income
$1,959
Traditional
$3,878
Airbnb
homes for sale
0
occupancy rate
73%
Airbnb
68%
Mashmeter
property price
$608,132
Median
cap rate
3.58%
Traditional
5.43%
Airbnb
rental income
$1,815
Traditional
$2,750
Airbnb
homes for sale
2
occupancy rate
75%
Airbnb
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