With a falling inventory and skyrocketing home prices, Denver’s housing market is having an incredible run. Since the legalization of marijuana in 2012, “..there has been a huge bump in real estate prices.
It’s massively pushed up raw land and industry prices,” says James Paine, managing partner at West Realty Advisors. Second only to San Francisco in terms of annual home price increases, Denver experienced a 10% jump in March according to the S&P/Case- Schiller Home Price Index.
Re/Max real estate agent Kelly Moye who has worked in the Denver real estate market for 24 years explains, “The pot industry is creating jobs we didn’t have before. It’s brand new, it adds a whole new factor to the area: you have real estate needs, housing needs, job needs.”
The growth of the marijuana industry has positively impacted other area industries like mom and pop electricians and HVAC companies who now service the new “green” business.
With the massive growth the city is experiencing, the city has become a hub for the tech industry which means more jobs but also a more competitive market for homes, as more and more people relocate to the area and subsequently require housing.
Toby Waters, a real estate agent with Vision Denver Homes add, “The rental market is insane. You can actually save money by buying a house.” According to Moye, inventory has been tight around the city with only about 4000 listings compared to 24,000 listings which the city normally has.