Denver Ranks 14th in US for Multifamily Housing Construction, Offering Long-Term Value for Buyers
Denver, Colorado – It’s no secret that the Denver metro area has seen a surge in multifamily housing construction, and the numbers back it up. According to a report from Construction Coverage, Denver ranks 14th in the United States for building multifamily housing units. This trend provides an affordable option for many buyers, but it’s essential to consider long-term value when investing in these properties.
Real estate agents are urging buyers to take several factors into account that could impact the appreciation of a multifamily home. Unlike single-family properties, multifamily homes may experience slower appreciation over time. However, there is good news for those considering these types of investments.
With the high demand for more multifamily properties in Colorado, experts believe that these homes will become increasingly valuable and sought after in the real estate market, especially for first-time home buyers. Crystalle Guss, a real estate agent, states, Because of the necessity for more multifamily properties in Colorado, I feel like those properties are going to be more valuable and more precious to have in the real estate market, especially for first-time home buyers.
To maximize the resale value of a multifamily housing unit, there are several selling points to consider. In addition to the property’s features, such as environmentally-friendly amenities, new flooring, and landscaping, other factors outside the home can also impact its value. Buyers should take into account the quality of nearby school systems, proximity to parks, schools, and lakes. Additionally, choosing a multifamily unit in an established neighborhood can boost its resale value significantly.
Kelley Hux, a resident of Denver, encountered several homeowners associations that had rules prohibiting her from renting out her unit in the future. To ensure her investment paid off, she carefully selected a condo that she could later use as an income-generating property. I can rent it out and continue to make income off of this property, she stated.
While Colorado is leading the way in multifamily housing construction, the rest of the country is also seeing an increase in this type of development. In fact, according to Construction Coverage, 41.4% of new housing units authorized in the United States in 2022 were multifamily, marking the highest level since 1985.
Investing in multifamily housing can provide a unique opportunity for buyers to enter the real estate market or expand their investment portfolio. Considering the long-term value and potential resale factors can help buyers make informed decisions. With Denver ranking 14th in the country for multifamily housing construction, it’s evident that this market segment is thriving and offers promising prospects for both investors and homebuyers alike.
