Boulder real estate values have been on a steady climb for the last decade, outperforming most markets within the United States. A favorable spike arrived in 2021 as inventory all but evaporated during the COVID-19 pandemic, providing another unexpected boost for homeowners. As of August 2022, Boulder’s median home value sits right around $1.1 million, a 36.3% increase from just two years earlier when values hovered around $807k during August of ‘21. Turning the clock back a full decade to August 2012, home values in Boulder were $468,000, making this a 135% value increase over that same 10-year period.

These numbers are enough to make most potential real estate investors salivate, but there are some indicators that these aggressive increases in property values are beginning to temper. Bankrate.com pointed out in a recent analysis of market trends that year-over-year appreciation rates reached their highest level in 45 years in 2022, topping out just above 19% for the national average. This is much higher than historical trends where homes traditionally appreciate somewhere in the 3% range. Then there’s the issue of shifting supply and demand. Inventory across most markets nationally and locally in Boulder has started to increase, albeit slowly. And with the Federal Reserve recently raising interest rates to help curb inflation, borrowers seeking a mortgage to close on a loan are facing higher lending costs. Another potentially scary tidbit is Zillow’s forecasting of a slight home value depreciation for Boulder within the next year.

So with all this in mind, are homes in Boulder still a good investment?

To answer this question, it’s helpful to take a look at the complexities contributing to Boulder’s unique housing market.

Investment Potential of Boulder Colorado Real Estate
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Thanks to its proximity to nature and outdoor recreation, Boulder has a reputation for being one of the best places to live in the United States. Locals who call Boulder home have long known this, but in recent years this mid-sized Colorado city has garnered much attention after securing the No. 1 spot on US News & World Report’s coveted list of Best Places to Live in the US. 

Unlike Greater Denver and its sprawling suburbs and outlying communities, Boulder’s geography doesn’t leave much room for expansion. Boulder is tucked into Flagstaff Mountain and the Flatirons, a collection of slab-like rock formations tilted into the foothills. Much of the surrounding open space is preserved, making development opportunities a bit limited. In recent years, development has extended north into the city into a new neighborhood named, you guessed it, North Boulder or NoBo for short. 

Even as active listings are up 22.9% year over year, as of August 2022, Boulder only has about 3 months of available inventory, assuming sales continue at their current rate. This is still far below the 6-month threshold that most real estate analysts agree balances out the market. So for now, sellers in Boulder still have a commanding edge over buyers in terms of supply and demand.

A high quality of life and a healthy job market have been drawing people to Boulder long before the US News rankings. Low crime and a small community add to the benefits, including high ratings for a number of other quirky accolades such as the No. 1 America’s

Foodiest Town by Bon Appetit Magazine in 2010. 

Add impressive views from pretty much anywhere in the city, short commute times around town, a vibrant arts community, a lively college atmosphere, a general appreciation of health and wellness, and, needless to say, Boulder has a lot going for it.

The most exclusive homes are located in the Chautauqua area, a draw for wealthy Denverites, Californians, or others looking to escape the hustle and bustle of larger cities. With just a 45-minute drive time to Denver, Boulder is still extremely commutable for those who have to make the daily trip. And for many, that’s not even a factor anymore. Thanks to the COVID-19 pandemic, remote work practices are well-embedded, accepted, and in some cases even preferred over reporting to the office. This new remote work norm has opened many doors for people to relocate both locally and globally, some choosing destinations such as Boulder that promote a greater work-life balance. But the demand for Boulder’s exclusive homes isn’t limited to those relocating permanently. Local tourism to Boulder, nearby Rocky Mountain National Park, and the University of Colorado all provide opportunities for investors to own coveted properties that have the potential for substantial returns and residual income.

According to AIRDNA, Boulder Airbnb rentals experience an 83% occupancy rate with a median revenue of $3,836 per month. That’s a pretty high demand for Airbnbs in Boulder, and that’s just one platform. Piggy-backing on housing market forecasts from local and national experts, many predict a cooling period or what some are calling “a return to normalcy,” but they still anticipate a healthy seller’s market into 2023 as supply catches up to demand. So even with the market cooling somewhat, buying a Boulder home remains a good investment, especially in the long term. The future is anyone’s guess, but Boulder’s long-established reputation as a wellness and nature destination puts this Colorado city ahead of so many others, especially due to its size and proximity to a larger metro area. Its popularity brings with it a short and long-term demand for housing—from college rental to luxury mountain getaway - that likely won’t change any time soon.

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Willow is a home management company based in Boulder, Colorado.

Our Custom Home Care Approach is an ongoing relationship between you, your home, and us. Billed monthly, with limited spots available.

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Article References:

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Bankrate: What is Home Appreciation in Real Estate?

Zillow: Boulder Colorado Home Values

Fortune Builders: Boulder Real Estate Market

Boulder real estate values have been on a steady climb for the last decade, outperforming most markets within the United States. A favorable spike arrived in 2021 as inventory all but evaporated during the COVID-19 pandemic, providing another unexpected boost for homeowners. As of August 2022, Boulder’s median home value sits right around $1.1 million, a 36.3% increase from just two years earlier when values hovered around $807k during August of ‘21. Turning the clock back a full decade to August 2012, home values in Boulder were $468,000, making this a 135% value increase over that same 10-year period.

These numbers are enough to make most potential real estate investors salivate, but there are some indicators that these aggressive increases in property values are beginning to temper. Bankrate.com pointed out in a recent analysis of market trends that year-over-year appreciation rates reached their highest level in 45 years in 2022, topping out just above 19% for the national average. This is much higher than historical trends where homes traditionally appreciate somewhere in the 3% range. Then there’s the issue of shifting supply and demand. Inventory across most markets nationally and locally in Boulder has started to increase, albeit slowly. And with the Federal Reserve recently raising interest rates to help curb inflation, borrowers seeking a mortgage to close on a loan are facing higher lending costs. Another potentially scary tidbit is Zillow’s forecasting of a slight home value depreciation for Boulder within the next year.

So with all this in mind, are homes in Boulder still a good investment?

To answer this question, it’s helpful to take a look at the complexities contributing to Boulder’s unique housing market.

Investment Potential of Boulder Colorado Real Estate
—

Thanks to its proximity to nature and outdoor recreation, Boulder has a reputation for being one of the best places to live in the United States. Locals who call Boulder home have long known this, but in recent years this mid-sized Colorado city has garnered much attention after securing the No. 1 spot on US News & World Report’s coveted list of Best Places to Live in the US. 

Unlike Greater Denver and its sprawling suburbs and outlying communities, Boulder’s geography doesn’t leave much room for expansion. Boulder is tucked into Flagstaff Mountain and the Flatirons, a collection of slab-like rock formations tilted into the foothills. Much of the surrounding open space is preserved, making development opportunities a bit limited. In recent years, development has extended north into the city into a new neighborhood named, you guessed it, North Boulder or NoBo for short. 

Even as active listings are up 22.9% year over year, as of August 2022, Boulder only has about 3 months of available inventory, assuming sales continue at their current rate. This is still far below the 6-month threshold that most real estate analysts agree balances out the market. So for now, sellers in Boulder still have a commanding edge over buyers in terms of supply and demand.

A high quality of life and a healthy job market have been drawing people to Boulder long before the US News rankings. Low crime and a small community add to the benefits, including high ratings for a number of other quirky accolades such as the No. 1 America’s

Foodiest Town by Bon Appetit Magazine in 2010. 

Add impressive views from pretty much anywhere in the city, short commute times around town, a vibrant arts community, a lively college atmosphere, a general appreciation of health and wellness, and, needless to say, Boulder has a lot going for it.

The most exclusive homes are located in the Chautauqua area, a draw for wealthy Denverites, Californians, or others looking to escape the hustle and bustle of larger cities. With just a 45-minute drive time to Denver, Boulder is still extremely commutable for those who have to make the daily trip. And for many, that’s not even a factor anymore. Thanks to the COVID-19 pandemic, remote work practices are well-embedded, accepted, and in some cases even preferred over reporting to the office. This new remote work norm has opened many doors for people to relocate both locally and globally, some choosing destinations such as Boulder that promote a greater work-life balance. But the demand for Boulder’s exclusive homes isn’t limited to those relocating permanently. Local tourism to Boulder, nearby Rocky Mountain National Park, and the University of Colorado all provide opportunities for investors to own coveted properties that have the potential for substantial returns and residual income.

According to AIRDNA, Boulder Airbnb rentals experience an 83% occupancy rate with a median revenue of $3,836 per month. That’s a pretty high demand for Airbnbs in Boulder, and that’s just one platform. Piggy-backing on housing market forecasts from local and national experts, many predict a cooling period or what some are calling “a return to normalcy,” but they still anticipate a healthy seller’s market into 2023 as supply catches up to demand. So even with the market cooling somewhat, buying a Boulder home remains a good investment, especially in the long term. The future is anyone’s guess, but Boulder’s long-established reputation as a wellness and nature destination puts this Colorado city ahead of so many others, especially due to its size and proximity to a larger metro area. Its popularity brings with it a short and long-term demand for housing—from college rental to luxury mountain getaway - that likely won’t change any time soon.

---

Willow is a home management company based in Boulder, Colorado.

Our Custom Home Care Approach is an ongoing relationship between you, your home, and us. Billed monthly, with limited spots available.

---

Article References:

—

Bankrate: What is Home Appreciation in Real Estate?

Zillow: Boulder Colorado Home Values

Fortune Builders: Boulder Real Estate Market