It’s a fascinating time for the residential real estate in downtown Denver. Despite some bumps along the way, things are looking up for the inner core of the Mile High City.
As we look back on downtown Denver residential real estate trends, below is an overview of what we found. In short, downtown Denver and condo sales took a hit in 2020 and 2021 but the market has rebounded overall and is looking stronger today than it did in 2019! From the pandemic, protests, tent camps, and restaurant closures, we have been able to rise above the challenges.
January 2022 closed out with a 6.8% increase in the median price per square foot at $547. This is up from $512 in 2021 and $495 in 2020.
Prices are on the rise, and homes in the 80202 zip code are selling at a quicker pace. At the end of January 2022, properties were on the market for 26 days in downtown Denver before receiving an acceptable offer. This is an improvement from last year’s 34 days. Keep in mind that these numbers are reflecting all price points.
While downtown is enjoying a stronger sellers’ market, numbers are still trailing behind the general housing market. The graph below shows that 80202 ended January with about 3½ months of condo inventory. This is in stark contrast to the 13 days of inventory for single-family homes. The downtown lifestyle is making a comeback, however, it does seem as though people are still reluctant to buy in the city.
The good news is with a smart pricing strategy, buyers are continuing to pay close to the list price! While there is a decrease in demand compared to single-family homes, buyers should expect to only negotiate about 1% of the list price – if at all.
Downtown Denver is on the rebound in 2022 and it is only February! As the weather warms, patios open and baseball season starts, I anticipate that we will see a higher demand to live in the city. My advice is if you are a buyer, I would get in now as prices and interest rates will be going up this spring. For sellers, I would start preparing your home now to obtain top dollar and be ready to list between mid-March and the end of April.
Future of 80202/16th Street Mall
There are some interesting changes that will soon be occurring in downtown Denver, namely along the 16th Street Mall. In addition to construction that will feature improvements needed to upgrade the aging infrastructure of the mall, the city’s Department of Economic Development and Opportunity (DEDO) and the Downtown Denver Partnership (DDP) have launched the Popup Denver program.
“This effort will attempt to address three challenges: the changing nature of retail; the economic impact of COVID-19; and the potential impact of the upcoming 16th Street Mall reconstruction project,” according to Popup Denver. “The five pilot stage Popup Denver tenants will be placed in the participating 16th Street Mall storefront of their choice for a minimum of three months at a significantly reduced cost, i.e., just operating expenses (utilities, common area maintenance, taxes). In addition to not paying base rent, the five pilot stage tenants will receive $20,000 in interior design, setup, and merchandising support.”
Time will tell what impact these additions and improvements will have on both residential real estate and commercial operations in downtown Denver. With ongoing development booming in RiNo neighborhood and the emerging projects in Golden Triangle area, downtown business leaders know they have to keep up with the ever-changing wants and needs of 80202 residents, visitors and commercial interests.
