There are two things that go hand in hand with one another and that is population growth and the real estate market. A prime example of this is the beautiful city we live in, Denver, which is one of the fastest growing populations in the nation. While the average growth of most cities is 0.8%, Denver is growing at 2.1% according to the most recent analysis of the U.S. Census Bureau.
This city is attracting new companies, old companies expanding and start-ups. Millennials are flocking here by the thousands as well as entrepreneurs who find the live/work life of Denver and the mountains super appealing. And with the growth of the city there takes a huge impact on the real estate market. There is a shortage of inventory and while developers work hard to keep up with the demand, Denver still is quite the seller’s market. But other cities expecting to see substantial growth, such as Charleston, Houston, Fort Myers and Austin, can take notes on what the people involved in the real estate market of Denver are doing.
I was recently interviewed by Inman.com to discuss how Denver homebuyers have learned to be savvy in such a competitive market and recommendations I would have for other cities who are going to be experiencing the same thing as us:
· Nontraditional Loans – Homeowners increasingly took a more unconventional route to purchase their homes – from cash buyers, VA loans for multifamily properties and HELOC on second homes to be able to buy without a contingency.
· Nontraditional Housing – With the average house price being $363k, many homebuyers are finding it hard to get into the market. But things like container homes and prefab homes are becoming popular. You can buy a shipping container from $1,500-$3,000, which is cheap real estate and it is a full structure that you can fabricate how you want.
· New investment potential – Homebuyers are specifically looking to buy properties (and RV’s) that will allow Airbnb/VRBO opportunities to benefit from the rental income. Homeowners were increasingly renting out their homes long term in order to travel or relocate. With investors, they quickly realized that their returns were too low in the Denver market and are now looking in other markets.
To read the full article, follow the link below to hear more of what I have to say to other cities who are about to experience the same rapid growth Denver was and is having: