Most people look at Colorado as an isolated place that sticks to themselves. Many people refer to Colorado as a bubble. People say this because of the mountains located in Colorado. However, the mountains can offer some good investment opportunities if you look around. We are going to take a look at what makes Colorado a good place to make investments in rental properties, homes, and land.
Population and Economic Growth Trends
The Colorado housing market is the seventh fastest-growing in the United States. People are more educated and are now referring to Colorado as the hidden gem. There have been many newcomers in the past few years to help the economy spike. In fact, the state’s population grew by 80,000 last year alone. Colorado used to be a rural state but it is quickly becoming a more urbanized state.
The economic growth in the last couple of years has also been impressive. In a single year, the economy grew 4.5 percent. Plus, there were 72,000 jobs added in that year as well, which is a growth of 2.7 percent. The unemployment rate is also below the national average of 4 percent at 2.7 percent.
Home Prices and Values Continue to Climb
After the Great Recession, builders have built a lot of new homes. However, the pace of building has slowed down a lot since then. This means there are less new homes for sale across the entire state. This also means that the prices are going up. The housing market itself was impacted by the cost of living increasing. Plus, the increase in mortgage interest rates.
Property values have increased by over six percent in the past year and are predicted to rise another 4.5 percent in 2019. These numbers indicate to investors that there is serious real estate appreciation.
Dropping Home Sales and Growing Rental Market
Because property values are rising, home sales have dropped. This in return causes rental vacancy to become low. Colorado has a strong economy but residents are still struggling to make a living because of the rising housing costs. This results in home sales dropping in the past year.
Home sales in Denver dropped and prices are continuing to rise. Single-family homes have dropped 5.5 percent and condos or townhomes have dropped 8.6 percent.
Investing in rental properties is a great idea because the housing market is in the top 5 landlord-friendly states in the United States. Colorado is one of the few states that allows a landlord to access the property without a 24-hour notice.
Plus, it is easier to evict people who are not paying rent or are not following the rules. The law says that there is a limit of a 72-hour notice to evict tenants. Not to mention, law enforcement is on the side of the landlords when it comes to not paying rent. After a 72-hour notice is given the tenant has one of two options, pay their rent or move. If they do not pay their past due rent, they have 48-hours to exit the property.
Investing in land in Colorado or even in the housing market is a great option. While the home values are rising and sales are lowering, it still means a good return when people purchase homes. The turnaround investment is worth it. Not to mention, homes in the mountains or Colorado, in general, have the best beauty around. For information on Colorado Land for Sale visit the link attached. Get started on your career today with investing in Colorado property.