HOUSINGNEWS REPORT
STATE SPOTLIGHT
of homeownership comes into play,” he said, adding that as millennials grow older they will likely move from a downtown Denver neighborhood into the first ring of suburbs, which are now more accessible to downtown thanks to a growing network of light rail lines through the metro area. Light Rail Revolution “We have four new light rail lines,” he said, explaining the most recent one connects the city to the airport. “It’s been exciting to watch all the light rail train lines go up. And what that has done to the market with transit-oriented developments. Certain parts of the city that 20 years ago, ‘no one would want to go there’ (now) within walking distance to a rail stop is where people want to be.” Kaufman, the broker associate in Englewood working with investors on condo developments, said the new light rail lines are an important factor in planning those developments. “The light rail project has been a focal point for infill,” he said. “Anything along the rail lines has had huge demand.” Guest, the Castle Rock broker/owner, said developers are building the transit-oriented developments as “mini- downtowns” to provide millennials with an alternative to the actual downtown. “The downtown is still a great draw, but because there is a limited quantity builders are starting to do this in other areas,” he said, noting that a former
DENVER HIGH & LOW END PRICE TRENDS
Above $500K Median PPSF YoY Pct Change
Below $500K Median PPSF YoY Pct Change
20%
15%
10%
5%
0%
-5%
-10%
-15%
My suspicion is that August sales will be way down. I don’t think prices will be affected as much. ... I think we’ll have another strong spring when people come back.”
Tom Guest | Broker/owner at Key Masters Real Estate in Castle Rock
may have more built-up inventory is because of the premium during this housing recovery on everything urban, walkable and close to downtown, according to local experts. “Walkability really has been a big factor in this housing cycle. It used to be ‘drive until you qualify’ or larger homes on larger lots are what you want. Now it’s more urban centric close to amenities (that) have much more come into play,” said Ochsner of RE/MAX Alliance in Arvada, adding that this trend has fueled gentrification in
previously down-and-out neighborhoods near downtown as millennials move into those neighborhoods. While homeownership rates remain historically low among millennials, more are buying as they make more money or hit major life milestones, according to Ochsner. “A lot of them are not able to buy or are hesitant to buy and are comfortable with renting. … As they are settling down and meeting spouses … the discussion
ATTOM Data Solutions • P15
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