Denver has secured its position as the hottest housing market in the nation, a title bestowed by the U.S. News and World Report. The analysis, based on the U.S. News Housing Market Index, meticulously examines various factors shaping the real estate landscape.
The Denver-Aurora-Lakewood Metropolitan Statistical Area (MSA) emerges as the frontrunner with a remarkable score of 74.8. This reflects a notable 7-point increase compared to the previous year, underlining the city’s sustained growth and attractiveness in the real estate sector.
The report identifies several factors contributing to Denver’s red-hot housing market. Noteworthy among them is the region’s commendably low unemployment rate, minimal mortgage delinquencies, and a low rental vacancy rate. However, a significant challenge surfaces in the form of an insufficient housing supply, acting as a counterforce to the surging demand.
The housing market index takes into account critical metrics, including supply and demand. Denver faces a glaring issue with the supply of homes struggling to meet the burgeoning demand. This is measured by the number of months it would take to exhaust all existing listings. As of December 2023, Denver’s housing supply could last only 1.9 months, trailing behind the national average of 2.6 months.
Despite the high demand, Denver experiences a nuanced scenario in its median sales prices. After reaching a peak of $595,000 in June, the median price sees a decline, settling at $550,000 by…
