The The Exodus Exodus from from Denver:

How Rising Housing Prices Are Shaping Population Flows

By Barry Overton

Denver, Colorado — a city renowned for its natural beauty, bustling downtown, and strong economy —has recently been facing a demographic challenge. With the legalization of marijuana over a decade ago, Denver became a prime destination for many people around the country.

While it continues to attract new residents with its opportunities and amenities, a significant number of people are choosing to leave. One significant factor driving this trend is the escalating cost of housing. In this article, we will delve into the statistics of population flows in and out of Denver, explore the states that are becoming alternative destinations, and offer viable solutions for those looking to overcome high housing costs.

A Look at the Numbers

According to a recent report from the U.S. Census Bureau, for the year ending in 2022, approximately 60,000 people moved out of Denver, while 50,000 moved into the city. That’s a net loss of 10,000 residents. These figures are more than just numbers; they reflect a significant shift in demographic trends and raise concerns for both real estate markets and urban planners.

The Role of Housing Prices

As of September 2023, the median home price in Denver sits at an astounding $600,000 a 10% increase according to a recent Realtor.com report. With such steep prices, it’s becoming increasingly difficult for middle-income families to afford a home in the city. For many, the financial strain has reached a tipping point, pushing them to look for alternatives outside Denver. Some of the deciding factors revolve around housing prices, job opportunities, and warmer climates.

Popular Alternative Destinations

The exodus from Denver isn’t without pattern. The states most appealing to departing residents seem to be those offering similar amenities but at a fraction of the cost. These include:

Texas: Specifically, cities like Austin and Dallas offer burgeoning tech industries and lower housing costs, respectively.

Arizona: Cities like Phoenix and Tucson provide warm climates and more affordable living options.

Utah: With its natural beauty

Local governments and NonGovernmental Organizations are providing affordable housing programs, which aim to offer homes at prices well below the market rates.

Assumable Loans

Opting for an assumable loan can be an effective strategy to inherit a lower interest rate from the seller, making monthly payments more affordable.

New Construction Home Deals

Builders often offer incentives such as discounted prices or free upgrades, making new constructions a good bargain for homebuyers.

While the rising cost of housing poses a significant chal- lenge, it also presents an opportunity for both policymakers and individuals to innovate and adapt. By leveraging affordable housing programs, assumable loans, and new construction deals, residents can still find ways to make Denver home. Moreover, the current trends could act as a catalyst for positive change, driving the creation of more equitable housing solutions for all.

Denver may be experiencing an outflow, but it’s far from a city in decline. With strategic solutions, it’s more than possible to reverse the current trends and keep the Mile-High City a desirable place for everyone..

Editor’s note: Barry Overton is a licensed Real Estate with New Era Group at Your Castle Real Estate. He has been an agent since 2001, and started investing in real estate in 1996. For more information, email: barrysellsdenver@msn.com or call 303-668-5433.