Over 44 million American households are renters, spending $485 billion in rent every year. There has never been a better time to dive into real estate investments.
Investing in real estate takes time and dedication. You need to constantly stay on top of emerging trends to see how they will affect your investment. Understanding real estate trends will set you apart from your peers and can give you a leg up in the long run.
So, keep reading to find out more about three Denver real estate trends and how they can benefit you.
1. Low Inventory
Inventory refers to the number of unsold residential and commercial real estate units in the area. More people are opting to age in place these days, meaning there are fewer houses entering the market. New construction will be key to offsetting Denver's already tight housing supply.
This means the property sells quickly. There aren't as many options available, so if you find something that you like and think will make a good investment, you need to act quickly.
When dealing with real estate you can count on the fact that your investment will appreciate a significant amount over the years. With inventory staying low and prices constantly rising, it's best to lock down any property you can find. While the real estate market fluctuates, you won't struggle to sell your property when you want to cash out.
2. Shortage of Workforce Housing
Luxury homes are on the rise in Denver. While this means homes selling for more than $1 million are increasing, this indicates a shortage of workforce housing.
When it comes to investing in real estate, you want to earn passive income from the property. With luxury homes, people are more likely to purchase their own homes instead of renting. Your target market should be workforce housing.
It might not be as glamorous as buying a mansion, but you'll be able to keep the property occupied until you're ready to sell. Since workforce homes only account for a third of the properties available to purchase in Denver, you should be able to easily sell the property.
3. Midyear Competition
If you're planning on buying a property you need to act fast. There will be an increase in competition toward the middle of the year and beyond. To avoid higher prices and fighting for property, avoid this busy time by buying now.
Denver Real Estate Trends Explained
When it comes to Denver real estate trends, you need to keep your eye on the prize. Trends come and go, so if you find a property that matches your criteria, rather lock it in instead of trying to predict future trends. Trends should only be used to help you make a decision, you shouldn't base it completely on them.
If you're ready to get started with your real estate investment journey, contact us today. Mavi Unlimited Inc. is a full-service property management company located in the Denver, CO area.