3 Colorado Ski Towns Make List of Best Small Towns in America
What the six ski towns on the list have in common and how it will impact real estate
Image credit: Nick Fox/ Shutterstock.com
In U.S. News & World Report’s annual listing of the 25 best small towns in America, Colorado’s ski towns dominated, representing three of the top 15 towns. Although it is no surprise that Colorado has become a coveted destination, I was surprised to find that the six ski towns on the list all had one thing in common — aside from great snow — and that this commonality could impact real estate.
Which cities made the list?
Three Colorado resorts land in the top 15 with Telluride taking top honors as the best small town to visit in America, Steamboat as the eighth and Breckenridge coming in at fifteenth. Here’s how the six ski towns on the list ranked:
- (No. 1) Telluride, CO
- (No. 2) Jackson Hole, WY
- (No. 3) Lake Tahoe, CA/NV
- (No. 8) Steamboat Springs, CO
- (No. 11) Stowe, VT
- (No. 15) Breckenridge, CO
What do all six resorts have in common?
As I went through the list one thing immediately jumped out — all six of the resorts are either owned by Vail or Alterra or have partnered with them. This is just another indicator (among many) that ski industry is rapidly becoming a two-horse race, where resorts must either be acquired or partner with Vail or Alterra to survive.
- Telluride – partnered with Vail
- Jackson Hole – partnered Alterra
- Lake Tahoe – owned by Vail
- Steamboat Springs – owned by Alterra
- Stowe – owned by Vail
- Breckenridge – owned by Vail
What about real estate?
Having six of the destinations on the list being either owned or affiliated with Vail or Alterra further perpetuates the companies’ competition. As the same cities continue to get recognized within the national media, travelers will continue to flock to each of these locations furthering the demand in each of the respective ski towns.
More visitors and “positive” media recognition will continue to spur real estate demand in each of the top destinations. At the same time, supply is severely constrained in each of the Colorado mountain towns due to lack of land and high building costs. This will lead to continued appreciation in the top destinations.
The continued success of peak destination ski resorts (such as Telluride, Steamboat Springs and Breckenridge), will force resorts into either being acquired by or partnering with Vail or Alterra to stay relevant in today’s ski environment. The resorts that don’t get on one of the two major horses will have a tough time staying afloat.
This list further highlights the strength of the two major players in the resort industry. When looking to invest in mountain real estate (whether in Colorado or elsewhere) you should focus on resorts that have already partnered with or are owned by Vail or Alterra. This will limit your downside risk as both companies are very well capitalized and will continue to invest and maintain the resorts even in a downturn.