Colorados luxury real estate market underwent a dramatic transformation between 2018 and 2023.
Suburban Enclaves
Affluent buyers increasingly turned to suburban enclaves for more land and privacy.
ft. and sell for $1.2$2 million.
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Resort Communities
Meanwhile, rural resort communities saw a surge of part-time and relocating high-income owners.
Many high-income buyers from out of state (e.g.
In suburban luxury markets like Castle Pines and Greenwood Village, properties often range from 3,5006,000 sq.
ft. with extensive outdoor space (12 to 1 acre lots).
Notably, some high earners chose unique property types e.g.
The tech sectors growth in Denver/Boulder played a role, bringing in young wealthy tech employees and founders.
This highly paid talent often purchased homes locally, boosting the luxury market.
Affluent buyers took full advantage.
Cheap financing reduced the cost of jumbo loans, enabling high-end purchases with minimal borrowing expense.
Wealthy Americans took advantage of low mortgage rates and remote work during the pandemic to snap up high-end houses.
This contributed to an unprecedented surge in luxury-home sales.
Market Cooling in 2022
By contrast, rising interest rates in 2022 quickly cooled the markets momentum.
Tax Policy Influence
Tax policy also played a role.
Tax and policy changes subtly pushed more wealthy buyers toward Colorado, reinforcing the states luxury housing growth.
Many high-income purchasers were seeking intangible luxuries like family time, health, and space during this era.
A spacious mountain home or an upscale suburban retreat offered safety and serenity during pandemic times.
Proximity to outdoor activities skiing, hiking, mountain biking, fishing is a major selling point.
One outcome was that formerly secondary destinations became primary residences for the rich.
Home Amenities Priority Shift
Moreover, the pandemic spurred interest in properties with private amenities e.g.
home theaters, pools, and expansive yards as upscale buyers sought to create self-sufficient sanctuaries for their households.
Colorados high-end market catered to these tastes, with luxury developments featuring on-site fitness/spa facilities or equestrian acreage.
But the scale of lifestyle-driven moves accelerated from 2020 onward.
The earlier period was bracketed by the Great Recession and a long recovery.
However, as the economy rebounded in the 2010s, confidence returned to affluent buyers.
From 2013 onward, Colorados upscale housing market saw steady growth.
But nothing in the 20082017 era quite matched the frenzy of 20202021.
Inventory and Supply Changes
Another key difference is inventory and supply.
However, new construction at the high end was relatively modest through the 2010s.
This contributed to the competitive bidding and rapid price gains of the pandemic era.
