Invest in Denver
| Square Miles | 4,531 |
| Population 2005 | 2,625,581 |
| Population 2006 | 2,663,017 |
| Labor Force | 1,442,267 |
| Employment | 1,302,832 |
| Average Annual Wage | $46,466 |
| Median Age | 34.4 |
| Households | 1,033,927 | Counties: Adams County, Arapahoe County, Boulder County, City and County of Broomfield, City and County of Denver, Douglas County and Jefferson County |
Our proprietary research indicates that from the end of 2008 to early 2009 new foreclosure filings in the Denver Metro area will drop off dramatically. At the same time, demand will pick up proportionately. There are qualified buyers sitting on the sidelines waiting to jump into the market. This, combined with those coming on line next year, will create above average demand. In our opinion, this pent up demand will drive prices back to 2005 levels and beyond, as time progresses.
- There is a “sweet spot” for buying, right now
- Denver is the most affordable and desirable market
- Denver is poised for appreciation gains
- Denver is experiencing increasing rental demand with vacancy rates at historic lows
- There is an opportunity for exceptional gains in appreciation as the market turns
Market fundamentals indicate that Denver offers the opportunity to achieve greater returns, with maximum safety, through ownership of income producing real estate. Single family rental homes fit the bill. Denver is at the bottom of its cycle, while the majority of the country is just over the top. This value-placed market is poised for good times in the next few years. Don’t miss this rare opportunity to buy in at the bottom. There is no better investment than a leveraged income property
Appreciation
Historically, Denver’s average appreciation rate has been 6.46 percent per year for the last 30 years.
Appreciation rates for single family homes over the past 6 years have been well below this level.
Particularly the ideal Rental Home is in the price range that has experienced NO APPRECIATION in the last 5 years.
Future appreciation levels should exceed 6.46 percent in order to achieve price and growth parity with the historical average.
It is reasonable to expect home price appreciation levels on the order of 10 percent per annum over the coming 3-7 years, beginning in the next 12-24 months.
By 2005, Denver employment levels had surpassed the previous highs of 2000. Currently, job growth in Denver is steady at just below 2 percent, which is above the national average.
Affordability
Today you can buy Denver area homes at below their 1999 value and well below replacement cost.
Other parts of the country, particularly California, Florida, Arizona and Nevada will continue to struggle.
Lowering rates will further fuel Denver’s recovery and add inflationary pressures on Denver’s housing market. Denver is set to recover now as historically Denver runs countercyclical to California.
During the past 6 years, the majority of the country has seen double digit appreciation in home prices.
Denver has run contrary to this trend, experiencing relatively flat prices, especially in homes priced below the median price range (< $250,000). In this price range rents are in line with values and produce a better investment profile.
The ideal Rental Homes are priced below what they sold for 5 years ago when that sub-market peaked.
For home values to reach the historical trendline they will have to increase at rates exceeding the historical averages.