Boulder Real Estate Market (1990-2020): An Investor’s Snapshot

Boulder Financial Realty Income Property

Boulder, Colorado, has long been recognized as a unique real estate market with an exceptional blend of natural beauty, academic excellence, and a booming tech sector. This mix, along with other factors resulting in high demand, low inventory and less room to build out, has played a crucial role in driving the demand and valuation of properties in the area.

The 30-year period from 1990 to 2020 saw an unparalleled surge in property values in Boulder. The market experienced an astonishing rate of growth, with homes doubling in value annually for decades and it appears we are on target to beat those numbers. This represents a goldmine for investors who have been eyeing capital gains as a primary source of return on investment, while enjoying the tax deductions real estate investment property and improvements afford.

Though capital gains are the star of the show, Boulder also affords very high rents comparable to the front range. The capitalization (cap) rates, although relatively low compared to some markets, have traditionally hovered around 5% and have lowered to 4.5% in recent years. This stability however, is significant given the explosive growth in property values. What’s more, with rentals averaging $1,300 per bedroom, coupled by a culture of pre-leasing 6 months prior to vacancy, Boulder boasts an impressive nearly zero vacancy rate, further enhancing its attractiveness to income-focused investors.

The period under review saw persistent high demand met with a constrained supply. Boulder’s commitment to preserving its natural surroundings, facilitated by taxpayer support and initiatives like the Boulder County Land Trust, ensured a vast expanse of open spaces surrounding our city. This move, while preserving the city’s charm and ecological significance, has created a situation of low inventory, pushing prices upward.

For investors, Boulder’s real estate market has been nothing short of a dream. Combining substantial capital gains with consistent rental yields and virtually zero vacancy rates, the market has consistently delivered. The conscious decisions by the city’s residents and administrators to preserve open spaces, while simultaneously driving up demand, have made Boulder a textbook case of how conservation can coexist with and even amplify real estate investment attractiveness. With the Governor’s pursuit of more affordable housing and increased density, single family homes with multiple bedrooms in excess of the allowed zoning, now are positioned to profit substantially by allowed increased density- which has it’s opponents.

Boulder Financial Realty is a Boutique Real Estate Brokerage since 1992, and offers unparalleled expertise and support for Boulder Real Estate Investors. Check out our reviews from other investors on our Home page and get in touch. You can also text the Broker: Catherine Chipman at 720-422-2224 on her personal cel phone for immediate service or email [email protected] or try our office at 303-442-2626.