The demand for housing in Denver area is high as more people move to Denver for better opportunities
and this makes house hunting increasingly more difficult. Thankfully, more houses are expected to be
built this year. Metro Denver home construction has picked up its pace since the first quarter of 2016.
According to property management companies in Denver area, 2,413 new homes were built in the first
quarter, 3% higher from the 4 th quarter of 2015 and 47% higher compared to the first quarter of 2015.
An estimated total of 10,000 homes will be built before the year ends.
John Covert, the director of Metrostudy’s Denver market mentioned that the increased demand in
housing has motivated builders to construct more homes and complete the construction as soon they
can. The cost of a new home in Denver averages at $503,768 whereas last month, the average price of
an existing house costs $398,663.
Covert stated that the construction of 10,000 homes is encouraging and notable but it still falls short of
the demand. There is a high influx of new residents in Denver due to better work opportunities coupled
with historical low interest rates has attracted a wide range of people.
Although there are efforts to increase the supply of housing in Denver, the demand for housing below
$400,000 is still high. An average household is on the hunt for houses less than $400,000. Covert
remains optimistic and expects that builders will be able to respond to the demand by building
townhouses, condos and suburban homes under $400,000.
