Insider: A Promising FutureLIV Sotheby's
With Census Bureau projections forecasting an increase of 15.9 million households across the nation in 2024, it begs the question, where will everyone go? Luckily, Denver’s economy, business growth, low unemployment rate, and lifestyle opportunities, suggest a promising outlook for Denver and Colorado in the foreseeable future.
Denver ‘s housing market, and that of the rest of the country, is poised for one of the largest expansions in modern times. According to a new study released by the Mortgage Bankers Association, and the 2024 Census Bureau, projections relating to the nation’s aging population, as compared to 2014, indicate an increase of 15.9 million new households nationwide.
Numbers indicate that there are: 20 million more people age 60 and over than there are today (Baby Boomers), 4 million fewer people ages 45-59 (as Baby Boomers are replaced by Generation X), and 18 million more people ages 18-44 (as Millennials replace Generation X’ers). What does this mean for Denver?
Locally, the population of Downtown Denver was 7,157 residents in the year 2000, climbing to a projected 18,914 in 2015, and nearly 22,000 by 2020, as reported by the Downtown Denver Partnership. City Center neighborhoods stood at a population of 52,883 in 2000, reaching nearly 70,000 in 2015, while anticipating over 77,000 by 2020, rising 10.6% from today.
There were 16 Downtown development projects completed in 2014, including nearly 500 new hotel rooms and 1,148 new residential units. Currently there are 20 projects under construction, with 15 more set to break ground imminently, making up 1,741 new hotel rooms and nearly 4,000 additional residential units. This construction also includes 2.4 million additional square feet of office space and well over 200,000 square feet of retail space that will help support the growth.
According to Realtor.com, Denver has been averaging 7.5% to 11.5% annual appreciation since 2012, but even conservative projections on general appreciation, perhaps closer to 6.5% to 8% over the next few years, is still very good. Consider the following Denver statistics:
- 1st – Best City for College Graduates – Apartments.com
- 1st – Largest increase in residents with college degrees – U.S. Census 2014
- 2nd – Best Beer City – Livability
- 3rd –Best City for Small Business – BIZ2CREDIT
- 4th – Healthiest City in the U.S. – American Fitness Index
- 6th – Fastest Growing Metro Area – Forbes
Denver and Colorado are not looking at an economic bubble, rather, they are enjoying a strengthened sense of consumer confidence. The economic timeframe appears to be entering the middle of the recovery period as we move forward. Recent stock market volatility and seasonal trends give buyers easier financial options and more time (and selections) to make their purchase decisions as both demand and supply continue to grow.
It is clear that the market remains healthy with the number of sales up 8% from one year ago and the average price coming in over 20% higher. The market has become more balanced over the last few months, giving buyers more of an advantage than over the last couple years.
With continued growth, the local real estate market is facing a very promising future.
LIV Sotheby’s International Realty compiles monthly, quarterly and year-end reports to help consumers make better real estate decisions, whether purchasing or selling a home. To access current market reports visit www.coloradomarketreports.com. For more information, contact downtown managing broker, Steve Blank, of LIV Sotheby’s International Realty at 303.520.5558¬. To service all of your real estate needs visit www.livsothebysrealty.com.