Tell Me Something I Don't Know
Indeed, Denver's popularity is reflected in the ever-increasing cost and competitiveness of buying a home in the metro area
There are only so many Top 10 lists those of us who adore our city can read. I find myself silently saying “Tell me something I don’t know,” whenever I read one. Sure, Denver is, one of the best place to live in the country.
One of the most potent trends we have seen over the last 10 years is the re-emergence of our city centers being located within neighborhoods. Residents no longer need to drive to the best places to eat, shop, entertain or drink – every neighborhood now has a local coffee joint and yes, a brewery. Arvada’s Olde Town, Littleton’s Historic Downtown and Denver’s Tennyson Street are all self-contained mini hubs, much like they were before the age of the automobile. Our residents, by in large, don’t want to live in just a city, but rather a lively space centered around the commerce and local flair that only a true community core can provide.
The trend certainly doesn’t come without cost. Some of these gentrified areas have seen the destruction of decades old mom and pop storefronts and new residents wanting more than a rough-around-the-edges bungalow. They want rooftop decks and large kitchens and though the housing in these areas supports existing commerce, the density in which they are in demand has skyrocketed the pricing.
In June 2018, the median price in the metro area was 145 percent of what it was just four years ago. With a median price of $412,000, according to new data provided by the Colorado Association of REALTORS®, our new residents’ budgets largely allow for such increases, as our pricing remains lower than the cities they are relocating from. While some natives are becoming priced out of their own neighborhoods, the silver lining is, despite housing increases, rising property taxes are helping support the services needed in each of these communities. Schools are receiving more funding, infrastructure is seeing unparalleled growth and, in large part, our city has done an exceptional job of maintaining the original character of these historic communities for future generations.
With 11 percent more homes selling in June 2018 compared to 2014, the demand doesn’t yet show signs of a downturn. We can expect that in the not-so-distant future, Denver’s cost of living will reach that of the cities our new residents are fleeing. It is at that point where we can expect our prices to sizzle rather than boil. Inventory will begin to creep back up and the buyer could once again have the edge. Until then, we wait, we enjoy and continue to read how we live in the best city in the United States.
Matthew Leprino is Broker/Owner of Leprino Home, Inc. and spokesperson for the Colorado Association of Realtors. He can be reached at: 303.482.1299 or firstname.lastname@example.org