3 Challenges Of Relocating To Denver
Posted on: 16 May 2016
Living in a big city comes with a lot of upsides. They usually offer great night life, plenty to do, and numerous employment opportunities. Many big cities also come with drawbacks as well. Big cities often have very competitive housing markets and can be expensive to live in. Coming in at number one on U.S. News & World's report on best big cities to live in, Denver is a popular city to move to. Sitting at the base of the Rocky Mountains, Denver offers gorgeous scenery and plenty of nearby outdoor activities. Relocating there is a dream for many. There are also plenty of challenges associated with relocating to Denver.
Low Inventory
One major real estate issue that many residents and future residents run into is a lack of inventory. The number of homes available reached a record low in February of 2016 with only 3,963 active listings. Denver is definitely a seller's market. Any new home that goes on the market will likely receive multiple offers. This means that any potential buyers should be prepared to be aggressive when looking for a home. Offers that are over listing price are often necessary in markets with low inventory.
High Prices
Home values are also skyrocketing in Denver. The median home value is $343,800 and that value is expected to rise 4.8% in the next year. Affordable properties that are under the median home price are in very high demand. Many also find themselves spending more than they would like in order to be able to purchase a home. The cost of purchasing a home isn't the only thing going up; the rental market is also becoming more competitive. In the last three years, rents have risen 30%. Dealing with increasing housing costs is one of the major challenges of relocating to Denver.
Lack Of Finished Lots
When relocating to a new area, many people prefer to purchase a lot and build their own house. In areas where finished lots are numerous, building a home is no problem. However, this can be a challenge in Denver. Lot shortages are a big issue for both developers and potential home buyers. Finished lots are ones with utilities already installed and that are ready to be built on. Turning raw land into finished lots requires approval from both the city and the county and can take up to 20 to 30 months. This is something that anyone who is relocating to Denver and plans to build a new home should consider.
The housing market in Denver can make relocation tricky. Some potential problems include a low inventory of homes to choose from, skyrocketing home prices, and a lack of finished lots to build on. Anyone moving to this part of the country should be prepared to be aggressive in this tough real estate market.
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