Denver, Colorado, started as a mining boom town and railroad center. The city is once again a boom town, with a diversified economic base and a low unemployment rate. Almost 80,000 new residents are moving to the Denver metropolitan area every year. The Mile High City combines the best of urban living with the vast outdoor playground known as the Rocky Mountains.

Market Insights

The real estate market in Denver is explosive with high demand and low inventory. The entire metro area had only about 5,000 homes listed for sale in February of 2016. The result of low supply is steadily rising home prices.

According to the Federal Housing Finance Agency's (FHFA), Denver is the number one city nationally in recovering property values since the economic crisis. The FHFA House Price Index gave the Denver-Aurora-Lakewood metro area a rating of 277.53 at the peak, 257.13 at the bottom, and a rating of 403.23, as of May 2016. This represents a 45.29% recovery from the previous peak.

Property and Transfer Taxes

Denver ranks 47th-lowest of the 50 largest U.S. cities for residential property taxes, and ranks 19th for taxes on commercial real estate. The difference lies in the state's allowable assessment for real property. Residential real estate is assessed at 7.96% of market value, and business property is assessed at 29%. The assessed value is then multiplied by the mill levies to arrive at the total property tax. Denver’s base mill levy is 78.127, which equates to $0.078127 per $1,000 of assessed value. Mill rates can be higher in neighborhoods with special improvement districts.

A $500,000 home has an assessed value of $39,800, with a tax bill of $3,109. A $500,000 commercial building is assessed at $145,000, with final tax due of $11,328. Market values are reset every two years, and mill levies are determined each year by the individual taxing authorities. No property tax revenue is given to the state.

Most Expensive Neighborhoods

A real estate map of Denver divides the city into 71 different neighborhoods. Most neighborhoods are less than a square mile in size. Many of these neighborhoods were considered suburbs and still have their own small commercial districts or historical areas. Each has its own distinct flavor and charm.

There were five neighborhoods that stand out from the other 66, based on average home sale prices as January 2016.

The Country Club neighborhood, slightly southeast of downtown, has an average sales price of $1.1 million dollars. It is known for its grand architecturally significant mansions, and part of the neighborhood is on the National Register of Historic Places. The neighborhood also has many smaller homes based on classic Denver styles of design.

Belcaro, immediately southeast of Country Club, is a tree-lined neighborhood with large lots. The housing stock includes mansions, new custom homes and large ranch houses. The average sales price is $1.03 million.

Hilltop, with an average sales price of $1.02 million, is immediately northeast of Belcaro. The neighborhood is known for its combination of mansions and character homes. Located at a slightly higher elevation than the surrounding area, it provides stunning views of the Rocky Mountains and is only 15 minutes from downtown.

Cory-Merrill, straight south of Belcaro, is slightly more affordable, with an average sales price of $738,900. The area has a mix of older homes and ranch homes on large lots. The neighborhood is a hotbed of remodeling.

Cherry Creek is located north of Belcaro, east of Country Club, and west of Hilltop. Cherry Creek is known for its shopping areas filled with boutiques and trendy restaurants. The area mixes luxury townhomes with McMansion style remodels of older bungalows. The average sales price is $738,000.

Top Real Estate Websites is a locally owned independent real estate agency that specializes in Denver’s classic neighborhoods. The site has concise descriptions of all Denver’s many neighborhoods. All its brokers are also realtors. is a local brokerage firm with thorough descriptions and listings for every neighborhood., The Denver Magazine, has a real estate section with articles covering many of the neighborhoods from the perspective of what is fun, trendy and desirable, rather than focusing on price. The magazine also covers restaurants, events and culture.

Las Vegas Real Estate Market

Related Articles
  1. Managing Wealth

    The 5 Factors Of A 'Good' Location

    “Location, location, location” is a common mantra in real estate. And it’s good advice.
  2. Investing

    6 Neighborhood Red Flags

    These six items should be considered when choosing a new home.
  3. Financial Advisor

    5 Best Real Estate Markets for 2016

    Real estate investing can be very lucrative, and these five markets are poised for a profitable 2016.
  4. Managing Wealth

    The Most Expensive Neighborhoods in San Francisco

    Learn about the city of San Francisco and why rent has increased so much in the past eight years. Discover more about the top five most expensive neighborhoods.
  5. Investing

    How To Buy A House In Another City

    Finding an agent, doing your research, feeling out neighborhoods etc.
  6. Personal Finance

    Wal-Mart's Future Success Lies in Neighborhood Markets (WMT)

    Wal-Mart's Neighborhood Markets are a profitable side brand that allow for flexibility and experimentation.
  7. Investing

    Number of $1M Homes in the U.S. Doubles From 2012

    The share of million dollar homes in the U.S. has nearly doubled over just four years, but of course, the surge in prices has not been spread evenly.
  8. Investing

    Wal-Mart Is Headed for Your 'Hood

    With its Neighborhood Market stores, Wal-Mart is likely seeking more traffic and speedier online fulfillment.
  9. Personal Finance

    The Top 5 Women-Owned Businesses in Denver

    Take a look at some of the most successful women-led companies in the Denver metro area, and learn why Denver is a great place for female entrepreneurs.
  10. Investing

    The Biggest Real Estate Mistakes To Avoid This Year

    The real estate market has changed dramatically in the last few years - don't get caught in the cold.
Frequently Asked Questions
  1. What is a trade deficit and what effect will it have on the stock market?

    Learn what is a trade deficit is, also known as net exports, and what effect they have on the stock market.
  2. What are soft dollars?

    The term 'soft dollars' refers to mutual funds making in-kind payments to their service providers; for instance, by passing ...
  3. How often do exchange rates fluctuate?

    Learn how exchange rates fluctuate. Exchange rates float freely against one another, which means they are in constant fluctuation. ...
  4. What is the formula for calculating earnings per share?

    Learn how to calculate earnings per share and why it's an important gauge in determining a stock’s value and a company's ...
Trading Center