Looking for savvy investment opportunities as a hedge against inflation? While real estate can be an excellent addition to your portfolio, many investors are spooked by falling prices in many pockets of the country. If you’ve been pondering purchasing an investment property but you’re worried about how the economy may impact your decision, Boulder is a market to consider. Our incredible city is widely regarded as recession-proof, and here, we offer a glimpse into why the Boulder market is so strong:
Boulder Has Historically Low Inventory
While many cities are seeing dramatic price drops as the market cools, this isn’t the case for Boulder. This is partly because our city has chronically low inventory, and this shortage of housing will not catch up to demand in the foreseeable future. One of the factors in our housing shortage is Boulder’s build restrictions, and combined with the destruction of more than 1,000 homes in the area by the Marshall Fire, one can easily see why housing is finite (and in high-demand). Due to the imbalance of supply and demand, Boulder homeowners enjoy unprecedented appreciation.
Our Market Is Incredibly Resilient
While it’s true that interest rates have risen very quickly due to the Fed’s aggressive action to curb inflation, the Boulder market has proven to be astoundingly resilient. This area largely stays sheltered from the effects of inflation and recession because of the following:
- Boulder has a remarkable infrastructure, including jobs from a plethora of industries and Fortune 500 companies.
- Our city’s population tends to be affluent and well-educated.
- Because of the great jobs and growing population here in Boulder, the demand for housing (both to purchase and rent) is growing rather than shrinking. This is excellent news for investors.
Boulder Homeowners Enjoy Massive Equity
SmartAsset consistently ranks Boulder as one of the most stable housing markets in the country. This financial technology company predicts less than a 1% chance of a drop in value in Boulder, which is unsurprising. Homeowners in our city have an incredible amount of equity, since the Mountain Division has benefited from 484% appreciation since 1991. The average home price in Boulder has reached $1.7 million, and is expected to climb in the coming years.
Adding to your portfolio always requires careful consideration, but especially in times like we’re currently living through. Real estate has traditionally been a safe investment choice, but rising interest rates and falling home values have many investors looking for other options. However, Boulder is an exception to the rule and has proven to be one of the most resilient markets in the nation. With home prices here steadily climbing and the rental market booming, your chances of equity gains are excellent. If you have any questions regarding our market, don’t hesitate to contact me. I’d love to help.