Multi-family properties are becoming increasingly popular in Denver’s housing market due to several factors. Let’s first start with explaining what a multi-family home is for those that may not know.
According to Rocket Mortgage…
A multifamily home is any residential property containing more than one housing unit. A duplex, townhome, or apartment complex is a good example of a multifamily home.
Denver’s multi-family real estate market took off strong in 2021 and hasn’t slowed down since. This is due to the city having a record low inventory of homes and would-be homebuyers opting for the lower monthly payments and amenities that most multi-family properties boast. Denver also saw a large increase in multi-family construction permits and multi-family housing starts over the past year or so.
As an investor in Denver, location is always key, especially when looking to invest in multi-family properties. One thing to consider when looking to invest is a family-friendly neighborhood with good schools, low crime, and good amenities, or even the mountains, nearby. Based on the opinions of the real estate experts here at DaVinci, below are some of the best neighborhoods to invest in multi-family properties in the Denver area:
Hilltop is a safe and affordable neighborhood in Denver. It’s great for families looking for a sense of community and lots of parks and green space. Hilltop also has top-rate public and private schools in the area. The area offers many different activities for the family and a bountiful amount of local dining options. Families could even enjoy a farmer’s market twice a week. This neighborhood is family oriented and offers a lot of options for activities and fun. This area would be good to invest in multi-family units as this neighborhood is family-friendly in its amenities and has a lot to offer.
Congress Park, about three miles west of Downtown Denver, has plenty of greenery, bike lanes, and many buses stop to make commuting to work easy. There are two schools in the area and one earned top ratings from the state of Colorado. There are plenty of local businesses to support in the community and this family-friendly neighborhood is getting a local public pool soon to open. The median age of the area is about 35 years old, and most of the neighborhood is renter-occupied. This area would be good for multi-family investments due to the statistics on over 50% of the community being renter-occupied and lower median age. You would be able to reach the market of young professionals as well as families in the area.
Hale is mostly residential and centered around Rose Medical Center. There has been a recent rising tide of new businesses and apartments that have drawn increased interest over the last few years. The school in the area has a decent rating and it boasts a great park for families to enjoy. Access to downtown is easy and there is plenty of shopping and retail close by to tackle errands. The median age is 35 years old and there’s a fairly even split between renters and owners in this area, with it budging more towards renters in recent years. With more restaurants and businesses coming to the area this is building up to be more of a young adult oasis. This area is great for an investment to target the growing community.
Cherry Creek has an abundant amount of amenities in the neighborhood such as retail, restaurants, fitness studios, boutique hotels, access to a great bike trail that winds its way downtown, and much more. The local school always earns top marks in education. The area has a median age of 55 and when it comes to housing it’s split in half between owners and renters. This area can not compete with the amenities it has to offer and that makes it a good area to invest in multi-family properties.
City Park encompasses more green space than urban blocks and is centrally located, it appeals to individuals who want a residential feel, walkability, and access to the best of the city. The only school sits in the middle of ratings. There’s a museum and zoo within the city boundaries, with plenty of restaurants as well. Downtown is a straight shot for residents. The median age is about 35 and this area is heavily renter occupied. Being heavily renter-occupied makes it a good area for multi-family investment as you know people are less likely to buy.
South Park Hill
South Park Hill has a high safety rating, a great central location, and great rankings for its three schools in the area. This area is ideal for young families to settle down. South Park Hill has a suburban feel with easy access to downtown when needed. This area would be a great option to invest in a multi-family property as the schools alone are wonderful. The benefits for young families are great in this area and will draw more people there.
Sloan Lake is adjacent to a park and multi-family homes are in demand with young professionals and families moving to the area. Sloan Lake’s location is a wonderful perk as it’s not too far from downtown, Edgewater’s main drag, the trendy west-end neighborhoods, and the highways that take you west into the Rockies. This neighborhood is mostly dense with the park and residences but has a decent food scene. This area skews slightly to owner-occupied at 59%, but is still a good place to invest in a multi-family property. This area is getting more expensive and a multi-family property will start to become even more attractive over time.
Are you considering investing in a multi-family property in the Denver, CO area? The real estate investment experts at DaVinci Realty would love to help! With extensive knowledge of Denver and how to make the best investment, you can trust us to steer you in the right direction – contact us today!