The Tech Boom’s Impact on Denver’s Housing Market
Denver has long been a desirable place to live with a booming economy, gorgeous scenery, and easy access to outdoor recreation. Thanks to the rise of the work-from-anywhere culture, and an influx of tech jobs, Colorado is more popular than ever. While Colorado’s tech community is growing, the population is also growing – and with that comes a rise in housing prices.
Why Tech Companies Are Moving to Denver
Denver has shed its “cowtown” reputation years ago, and is well known for a high quality of life. Just a few reasons why people are flocking to Denver include:
- Easy access to nature and recreation
- Stunning views, with more than 140 miles of mountainous landscapes
- Pleasant climate, with an average of at least 300 sunny days each year
- Eight professional sports teams and clubs
- International airport
- World-class food and beverage scene
Denver’s Housing Market
With a high demand for area homes, the Denver housing market has become the most competitive it’s ever been. Prices have hit a record high, and the number of homes listed for sale has hit a record low. According to Jill Samuels, Managing Broker, Highland Team and Compass, “2020 has been one of the most unique years I’ve ever experienced in my entire career. Tech professionals are relocating here in droves, so unlike so many other cities across the country, we’ve actually seen the market go up in the midst of the COVID-19 pandemic.”
Record High Average Home Prices – October 2020
- $625,100: Average price for a single-family detached home
- $393,733: Average price for condos and townhomes
Record Low Home Inventory
- 4,821: Active listings in October 2020 (detached and attached properties)
- 8,557: Active listings in October 2019 (detached and attached properties)
Denver as a Tech Hub
Tech companies have dominated the San Francisco Bay Area for years. With a similar culture but a lower cost of living, Denver’s been attracting tech companies’ attention for the past several years. As of 2019, the emerging tech scene has already ranked Denver as number 10 on the CBRE list of top American cities for tech growth and a leading growth market.
Many tech job opportunities stem from the slate of companies either moving to or already located in Denver. The customer relationship management software of Salesforce has called Denver home since 2013, and it began its expansion in the area last year. Payroll processor Gusto, electronic design firm Keysight, and enterprise cloud communications company RingCentral call Denver home, and Amazon plans to expand in Denver.
Tech firms moving to Colorado include Marqeta and Wix.com. The card-issuing platform of Marqeta chose Denver as its second headquarters while the website creation firm of Wix selected the city for its most recent location.
Impact on Denver Housing Prices
Denver’s ongoing migration is expected to continue to drive home prices up, and available homes are being snapped up rapidly. The median number of days for Denver homes on the market hit a new record low of six, down from the previous record low of nine in September 2015 and 2016.
Homes are selling at all price points throughout Denver, and mountain towns also seeing a boost in luxury home sales. Aspen saw double the home sales in September 2020 as it saw the previous year. Summit County has 66% less inventory today than in 2019, while the average sold price is up 22%.
Stake Your Claim in West Line Village
Although the surge in tech jobs has impacted Denver’s housing prices and the surrounding areas, the region remains one of the most attractive places to call home. The climate, community, and gorgeous scenery may make a move to the Denver area well worth the investment.
West Line Village, which is five stops from downtown Denver on the W Line, has officially sold out of the luxury townhomes built during its first four phases; the fifth and final phase is selling out fast. Stake your claim in one of the Denver area’s most affordable, and unique communities. Contact West Line Village today.