Top Denver Housing Market Trends for 2022 introduction

Looking ahead to the Denver housing market in 2022, several trends are worth watching. While it’s impossible to predict precisely what will happen, understanding the potential drivers of change can help you make informed decisions about your home purchase or sale. Here are some key trends to keep in mind.

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1. Steady demand and limited supply will increase home values.

Denver’s population is growing steadily, and while it had some slight setbacks in the last few years due to recessions, it is likely to continue its ascent going forward. Population growth means demand for housing will increase. At the same time, though, new homes typically take a few years to build from scratch—and in Denver’s case, there is a limited supply of available land. All these factors will lead to increased home prices and decreased inventory.

2. Millennials need more space.

Tight inventory and steady demand mean that millennials (those born between 1980 and 2000) may look outside the city for homes with enough bedrooms, bathrooms, and storage space. The suburbs are attractive to this group, as they offer more affordable prices and a suburban lifestyle appealing to many.

3. More seniors will downsize.

On the other end of the age spectrum, an increasing number of seniors will likely downsize to simplify their lives. Downsizing can free up money used for travel, hobbies, and other activities. This will create opportunities for sellers looking to move into a smaller home or for developers to build age-targeted communities.

4. Multifamily development will continue.

Multifamily homes—which include apartments and condos—offer an attractive option for those who want to live in the city but can’t afford to buy a home. As more people seek urban lifestyles, Denver’s condo and apartment development has ramped up. This tight market means that multifamily homes will likely remain popular for the foreseeable future.

5. There will be more interest in sustainable building practices.

With the increased awareness of climate change and its effects, there is growing interest in sustainable building practices. Homebuyers are looking for energy-efficient homes and have features like solar panels that can help reduce their monthly expenses. As this trend continues, builders and developers will need to adapt to meet the demand.

6. The market for luxury homes will stay strong.

The market for luxury homes—defined as those priced at $1 million or more—has been vital in Denver, and it is unlikely to change in the coming years. Those who can afford to buy a luxury home will continue to have plenty of options, while those looking to sell their home at this level will have an easier time finding buyers.

7. Turnkey properties will be in demand for ageing baby boomers.

For many older Americans, the idea of moving into an assisted living facility or nursing home is unappealing and overwhelming. Instead, they may look for a turnkey property—a house that has already been renovated to meet their needs, from wheelchair accessibility to a gourmet kitchen. As more baby boomers reach retirement age, the demand for turnkey properties will likely increase.

These are just some of the trends that might shape housing in 2022; circumstances could be entirely different then. Of course, it’s essential to do your research and speak with a local real estate agent to get a better sense of what’s happening in your market. By being aware of these trends, you can make more informed decisions about your home purchase or sale.