Denver Ranks #1 in US News & World’s Report's Hottest Housing Markets
Several Colorado cities rank high on list of national housing markets
September 21, 2023 - Rankin Goulder & Kissinger
At Rankin Goulder & Kissinger, we take great pride in our Colorado roots. For decades, we've nurtured our lives, families, and business right here in the vibrant communities of Denver, our beloved Mile High City. Colorado's exceptional quality of life has been well-known, and recent annual rankings have consistently highlighted our region as a premier destination.
Despite interest rates and inflation that have slowed the local and national real estate markets across the board in 2023, the Denver market remains among the most robust in the nation. As a result, it comes as no surprise that in Denver ranked #1 in U.S. News & World Report's “Hottest Housing Markets."
The U.S. News Housing Market Index "incorporates a wide array of data points, it provides a simple yet comprehensive way to rank the covered metropolitan statistical areas (MSAs) from shivering to scorching on a scale of 1-100."
For the month of June 2023, the Housing Market Index reached a high range of up to 72.9, surpassing the national value of 66.6. Below are the top five hottest housing markets, ranked from first to fifth:
1. Denver, Colorado – 72.9
2. Durham-Chapel Hill, North Carolina – 71.3
3. Raleigh, North Carolina – 70.3
4. Charlotte, North Carolina – 70.2
5. Cape Coral-Fort Meyers, Florida – 69.3
According to the report, "as soon as inflation has been better tamed and mortgage rates retreat below 6%, it will likely be these markets in which we’ll see a return of more listings along with multiple offers and bidding wars."
Above: The stunning 1065 S Race Street in the heart of Denver, sold by Rankin Goulder & Kissinger of Compass Denver in 2023
Although each of these markets initially thrived due to exceptionally low mortgage rates and the demand for increased living space during the COVID-19 pandemic, they have continued to maintain their appeal even as employees have returned to offices and mortgage rates have gradually climbed to levels not seen in over two decades. Moreover, most of these metropolitan statistical areas (MSAs) offer the advantages of city services and amenities without the drawbacks associated with larger metropolises like New York, Los Angeles, or Chicago.
The Denver MSA boasts a diverse set of strengths, including low mortgage delinquency rates, minimal rental vacancies, and a relatively robust correlation between building permits and job growth. The city added 19,400 jobs year-over-year through June 2023, marking a 1.2% increase compared to the national growth rate of 2.7%. Denver boasted a low unemployment rate of 2.8% in June, as opposed to the national rate of 3.7%.
Despite a recent uptick, the median sales price in the Denver MSA experienced a 2.1% year-over-year decline, reaching $597,000. However, this figure remains significantly elevated, standing at 40% above the national median sales price. In comparison, the national market saw a 0.5% annual decline, with a median sales price of $426,000. It's important to note that these price decreases are not driven by decreased demand but rather by diminishing affordability due to rising mortgage rates.
From the report: "While the supply timeline for homes on the market in Denver increased from 1.2 months a year ago to 1.4 months in June, it remains below the national average of 1.8 months. Nevertheless, both markets would ideally maintain a healthier supply timeline closer to four to six months. Until more homes become available for sale, it's likely that prices will continue to remain elevated."
Other Colorado cities ranking highly include Greeley, Colorado Springs and Fort Collins.
Read the full article and rankings from U.S. News & World Report here.
The charming 2181 Willow Court in Denver sold by Rankin Goulder & Kissinger in 2023.
Whether you're already a Colorado resident or considering a move to Denver, our team of seasoned Colorado real estate experts are poised and ready to assist you throughout your home buying or selling journey. Backed by Compass, the leading brokerage in both market share and sales volume in Denver (source: REColorado), we come equipped with a wealth of resources, connections, and expertise to ensure you receive the utmost value for your current property and achieve a successful outcome in your next home endeavor.
If you're curious about the Colorado real estate market, whether it's buying or selling, don't hesitate to reach out to us today. We're dedicated to working diligently on your behalf.
We’d love the opportunity to show you what we do!
If you are thinking about buying or selling anywhere in the Denver area, reach out to Allison Rankin, Jane Goulder, or Amy Kissinger today!
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If you are thinking about buying or selling anywhere in the Denver area, reach out to Allison Rankin, Jane Goulder, or Amy Kissinger at RGKColorado.com. Whether you are a first-time buyer, an investor or a seasoned buyer looking to upsize or downsize, we have the experience, resources and relationships to help and we would love to help you begin your next chapter in the Denver area!
