Throughout the year, Denver has been acclaimed as one of the hottest housing markets in the nation, and while that is true, the heat hasn’t exactly radiated evenly across the metro area. According to a recent article, central Denver has been relatively cool compared to the outlying suburbs, especially when it comes to single family homes. Suburbs particularly on the east side of the city saw fairly higher levels of single family homes sold in 2016, both to new owners and investors.
So Where is the Heat?
Denver’s suburb of Green Valley Ranch and its immediate neighbors saw a high number of home sales this year, particularly for their affordable prices ranging between the 200s and 300s. The neighborhood has also seen an increase in homes being built in that area as the suburb continues to expand. Flipping over to the west side of Denver, the West Highland area also saw a more homes selling.
Why Not Denver?
Central Denver areas didn’t catch the heat as much as the outlying suburbs for two reasons. Central Denver areas, such as Capitol Hill for one example, are a lot more concentrated with condos rather than single family homes. And when you take into account all of the newly constructed apartments and condo buildings popping up seemingly overnight throughout the Downtown area, it’s not hard to see why they didn’t do as well in single family home sales. And given that that’s what the report mostly focused on, those areas would fall on the colder side. The second reason is that there are more renters than homeowners in those areas, with owner-occupied units totaling less than 30% according to stats pulled from the American Community Survey estimates.
What Comes Next?
As we start to look forward into 2017, it will be interesting to see if this trend and many others continue and how many of these same homes will show up as rentals. If Zillow’s prediction proves correct, rents are expected to rise again in 2017, as are home prices and values, but only time will tell.