Whether you’re looking for your first home, apartment, condo or high rise, Downtown Denver has it all.
Downtown Denver has an almost endless amount of housing options for every taste and budget. From historic renovated lofts to modern condo high rise buildings there are an abundant number of choices for both renters and for owners. Each of the city center neighborhoods has its own unique character and architecture which makes living in Downtown even more special.
Over the last 30 years, Downtown Denver has accumulated 5,100 apartment units, or 3.4% of metro Denver’s inventory. Due to a significant cultural and lifestyle shift for the younger population, there are more than 7,000 units proposed or under construction in more than two dozen developments in Downtown over the next five years. Although there are more units proposed and under construction in Downtown than the current inventory, Downtown Denver has become the largest and trendiest destination for the younger generation.
In the past year, Downtown’s total population has grown by 35% to 16,959 residents. The strong population increase is the result of both organic growth and in-migration, as suburbanites move into the city and out-of-staters relocate to find jobs. This demand will continue as the economy approaches pre-recession levels and the transformation of Denver Union Station creates a new dynamic for workers that want to live in Downtown Denver.
After taking a substantial hit in 2009 and 2010, the Downtown Denver apartment market has recovered at a faster rate than the rest of the nation. Vacancy rates remain historically low and effective rents continue to climb.
In 2011, the average vacancy rate in Downtown decreased to an average of 5.25% and has stayed there in 2012. This represents the lowest vacancy rate in Downtown in a decade and is expected to remain there as construction lags behind Downtown’s growing demand.
The desire of the echo boomers and young professionals to live in a central, urban location has tightened Downtown Denver’s market substantially and caused effective rents to grow at significant rates. In 2011, effective rents in Downtown increased 14.0% over 2010, to an average of ,386 per unit. Effective rents have already increased 6.2% in 2012 and are expected to rise as the year progresses.
Searching for multi-family housing options in Downtown and its city center neighborhoods has never been easier.
While the recession has put the brakes on the development of new single family housing construction in the short term, Downtown Denver has an overall healthy residential real estate market. There are a wide range of price points that can be found throughout the Central Business District and the surrounding neighborhoods. New townhome projects are beginning to commence construction as the economic recovery gathers steam. You can find a wide range of choices from Denver squares with yards, historic renovated lofts and even luxury high rise condos.
Residential Market Statistics
The housing market in the Downtown consists almost exclusively of townhomes and condominiums. Like the Metro Denver region, the market showed higher sales numbers between the fourth quarters of 2011 and 2012. In the core, the number of homes sold rose 159.1 percent over-the-year, and the average sales price increased 31.7 percent to 6,298. The large sales price increase was due to the fact that 14 properties priced at million or more were sold in the fourth quarter of 2012 compared with one such property in 2011. Most million-dollar properties in 2012 and the single property sold in the fourth quarter of 2011 were in the Four Seasons Luxury Residences. The remaining high-priced home sold in 2012 was in the Spire.
As a larger area that includes the core, trends in the Downtown housing market were very similar. The number of homes sold rose 114.5 percent in the fourth quarter of 2012 compared with year-ago data. The average sale price of a home also increased 18.7 percent to 5,012.
The larger City Center Neighborhoods (CCN) area showed positive trends between the fourth quarters of 2011 and 2012. The number of homes sold rose 65.3 percent to 357 in the fourth quarter of 2012. The average selling price of a condominium/townhouse rose more than both the core and Downtown, increasing 32.4 percent to 5,907. The average selling price of a single-family house also increased over-the-year to 3,620, a 19.6 percent increase.
Homes sales activity throughout Metro Denver has remained strong and rose at a fast pace in the fourth quarter of 2012. Sales increased 26 percent compared with year-ago data, higher than the third quarter increase of 24.2 percent. As sales accelerate, prices continue to increase due to heightened demand. The average sales price of a condominium/townhouse was 18.5 percent higher than the same period in 2011, reaching 4,051. The price also increased 3.6 percent over the third quarter of 2012. The average single-family home price showed a slightly smaller, though still strong, increase of 11 percent to 5,939. The third quarter 2012 price was 1.6 percent higher than the fourth quarter price.