As 2017 winds down, thoughts turn to the new year and what’s on the horizon for Denver.
The Mile High City has been on an impressive growth streak. In 2016, the Metro Denver area had “strong economic trends” with more of the same forecasted for 2017, according to a report from the Denver Metro Chamber of Commerce.
One leading indicator of economic strength is employment growth. Metro Denver clocked in at 1.2 percentage points above the national average with 2.9 percent employment growth.
It’s not a secret that Denver is a great place to live and work, and the city received some impressive accolades in 2016:
U.S. News and World Report named Denver the best place to live in the country based on a healthy job market, cost of living, and perception as a desirable place to live.
Forbes ranked Denver as the nation’s best place for business and careers for the second year in a row.
Outside Magazine ranked Denver the third best place to live in the country.
Population
While over 1,000 people move here every month, population growth has slowed slightly according to numbers released by the U.S. Census Bureau. For the year ending July 1, 2016, 13,028 people moved to Denver, which is a 1.9 percent increase in residents. However, it is the first time this number has dropped below 2 percent since 2010.
Home sales
The population increase has profoundly impacted the housing market. Denver has been a seller's market for the past number of years, largely due to low inventory. The September median price was $377,000 including single family homes, condos and townhomes.
Finding a home has been particularly challenging for buyers with a price point under $400,000. Many properties in that range receive multiple offers within a few days of being listed, some over the asking price. However, there are signs the pace may be slightly less frantic.
Karen Nichols, Broker Associate at Perry & Co, summed up the current state of the market saying, “We are seeing some seasonal slowdown overall in sales activity. However, the market since the beginning of the year still reflects an increase in pricing even with a feeling that activity is a little flatter. Denver is still incredibly strong and the historic neighborhoods remain in high demand."
Below are September median home sale prices and include the price changes over the last 12 months.
- Capitol Hill: $289,470, -3.39 percent.
- Cheesman Park: $356,090, -1.03.
- Cherry Creek: $840,630, +1.98.
- Congress Park: $618,720, +4.69.
- Country Club: $1,125,000, +3.77.
Where to find a deal
There are some areas around town where it is possible to get a house without paying an exorbitant price. Nichols says Virginia Village and neighboring Virginia Vale in southeast Denver are two such locations. The September median sales price for Virginia Village/Virginia Vale was $442,370.
Ruby Hill, west of Santa Fe and south of Mississippi, and nearby Harvey Park are great for first time buyers. The median home sale price in Ruby Hill was $276,500 and $320,000 in Harvey Park.
Rental rates
According to Zumper’s Spring 2017 report, Denver was the 24th most expensive city for renters. The median price for a one-bedroom was $1,210 and $1,680 for a two bedroom.
The Golden Triangle topped the list as the priciest neighborhood with a median rent of $2,090 for a one bedroom, closely followed by the Central Business District at $1,950 and LoDo at $1,870. Belcaro and Cherry Creek were also in the top ten with median rates for one bedrooms of $1,750 and $1,700, respectively.
Below are median rent prices from Zumper for other neighborhoods:
- Washington Park West: $1,250.
- Cheesman Park: $1,195.
- Congress Park: $1,185.
- Capitol Hill: $1,150.
Unemployment Rate
The unemployment rate is extremely low for the Denver-Aurora-Lakewood area and was 2.2 percent in August, according to the Bureau of Labor Statistics. While beneficial for job seekers, a low employment rate can make it difficult for employers to find all the workers they need.
Income
According to incomebyzipcode.com, which pulls information from the U.S. Census Bureau, the average household income in Denver County, as of December 2016, was $79,959.
Below are average household incomes broken down by zip code:
- 80202: Downtown, LoDo, $107,800.
- 80203: Capitol Hill, Speer, $63,282.
- 80206: Country Club, Cherry Creek, Congress Park, $103,792.
- 80209: Washington Park, $118,809.
- 80218: Cheesman Park, $80,256.
Denver is an increasingly popular place to live with a strong economy and low unemployment. There are certainly challenges including an expensive housing market. All in all, the city is well positioned for continued growth in 2018.
