Fort Collins has proved that it is among the best long-haul real estate investment in the United States during the last ten years, whether you are an investor or a home buyer.
Fort Collins’ property costs are among the highest in the country, with a typical house value of $550,000. Nonetheless, they pale in contrast to the most costly Colorado municipalities.
In 2021, the municipality had a population of 343,000, an increase of 1.78 percent from the previous year. Over the last year, the municipality’s housing market statistics show an increment of $80,000, marking a 17 percent increase in the median house cost.
According to NeighborhoodScout, real estate in Fort Collins has incremented by about 94 percent within the last ten years, equating to a yearly mean growth rate of 6.8 percent, putting the City among the top 10 percent of all cities concerning property value.
Hence, the question begs, why is the Fort Collins Real Estate Market so hot?
More High Paying Jobs
There has been a recent upsurge of people relocating to Fort Collins for high-paying jobs. One of the City’s largest employers, Broadcom, employs more than 1,500 people in southeast Fort Collins and is currently advertising on Glassdoor.com to hire 19 additional positions.
In addition to Broadcom, companies like Advanced Micro Devices and Microsoft have advertised open positions in Fort Collins on Glassdoor.com.
High-paying jobs are not the only ones available in the City, as there is also a growing demand for entry-level and minimum wage positions.
The employee retention rate is also high in the City, as people enjoy working here and don’t want to leave.
This is good news for the economy and helps create even more jobs. It also means that more people are looking for places to live, which drives up demand and prices in the real estate market.
Colorado is Relatively Landlord Friendly
It is difficult to evict a tenant in many states, even if they are not paying rent. This can make it difficult for landlords to turn a profit or even break even.
Colorado is much more landlord-friendly than most states. It is relatively easy to evict a tenant who is not paying rent or causing damage to the property.
This makes it easier for landlords to make a profit, which drives up prices in the rental market. The Fort Collins real estate market, doesn’t prohibit short-term rentals. Hence, it’s easier for landlords to rent out their properties on a short-term basis, such as on Airbnb.
This flexibility gives investors a higher return on their investment and helps drive up prices in the market.
Fort Collins is a Seller’s Market because of its Tight Supply
For single-family houses, the Month’s supply is 18 days. On the other hand, a balanced market has a supply of four to seven months.
A more excellent figure indicates fewer purchasers than accessible properties in a buyer’s market. A lower figure shows a seller’s market, suggesting more purchasers than accessible homes.
The median price on the Fort Collin market soared to $495,000. The increase year-over-year was 11.2%.
Property on the market went for a median price of $241 per square foot. $480,000 was the median sales price. In Fort Collins, CO, Home prices were about the asking price in October.
Fort Collins Isn’t As Affected by Californian’s Migration
There has been a mass migration of Californians to Colorado in recent years. This is due to the high cost of living and housing in California.
The influx of Californians has driven up prices in many other states. However, thanks to a state law passed in the eighties, Fort Collins, like other Colorado cities, is protected from rent control laws and how they cause housing prices and open market rents to skyrocket.
The lack of rent control laws means landlords can charge whatever they want for rent, which helps keep prices relatively low. This makes Fort Collins a more affordable option for people looking to relocate from California or other states.
As a result, the City has maintained its small-town feel even as it continues to grow.
Fort Collins’ Water Crisis
The Montava project makes it hard to find a solution to the City’s water challenge. The 4,000 home project headed by Max Moss filed an application to permit them to deploy an aquifer to deliver clean drinking water to the community.
Unfortunately, the decision is expected to be made in more than a year, thus putting the entire project on hold.
And it is a known fact that continued low inventory translates to more rising pressure on sale prices for the already-built homes.
Vaccination to Raise Mortgage Rates
According to Bankrate.com, in 2021, the COVID-19 vaccine will raise mortgage rates somewhat as the economy heals and improves.
We anticipate that if the mortgage rates start to shoot up, a big case of FOMO (Fear of Missing Out) will engulf the masses, resulting in a fresh wave of purchaser activity within a market traditionally recognized as low inventory.
Fort Collins is a Vibrant, Growing City
In 2020, Liveability.com created a list ranking the top 100 places to live within the United States, and Fort Collins took the top spot. The site described Fort Collins as a lively, growing municipality overflowing with unending potential.
This served as an indicator of the masses’ growing satisfaction with the City, thus making many other people want to get a piece of its real estate. Hence, making it so hot.
Wellington’s Shooting Prices
Those seeking an affordable home purchase option in Wellington, a popular sub-market in Fort Collins, have reported a three-fold increase in water rates.
The hike is projected to add virtually $40,000 to the cost of a house in Wellington. In 2020, the typical selling cost in Wellington grew by 7.4 percent compared to the 5.8 percent in Fort Collins.
Wellington’s more considerable increase, along with the rise in new home cost due to the tripling water cost, has reduced the affordability difference, perhaps convincing more purchasers to choose Fort Collins.
Diverse Economy
Due to its broad economy, the Real Estate market has been relatively steady in Fort Collins. If statistics are anything to go by, you will notice that the City’s property values never declined as much as the rest of the nation during the recession.
According to the Federal Housing Finance Authority, although property prices throughout the United States plummeted by about 34 percent in the recession, Fort Collins’ property cost decreased by only 3.89 percent.
And these numbers motivate Real Estate investors because nobody is in the business of making losses. Hence, making Fort Collins’ Real Estate so hot!
Future-Oriented Rental Market
The current state of the City’s rental market gives no sign of declining soon. As Fort Collins’ population steadily increases without exceeding a given threshold, reducing the threat of residents being priced out.
Thanks to Colorado State University’s advantageous placement inside municipal borders, the area boasts a large learner population. You might go the scholar rental route, providing low-cost apartments to the University’s students.
In addition, not all the students will leave the City after matriculation from the University. Many of them hang around, getting local jobs and leasing bigger homes.
And real estate investors are mindful of this factor since it catalyzes sustainable returns from their venture.
Conclusion
In retrospect, Fort Collins ranks as one of the country’s most appealing places, boasting an expanding economy with a swelling number of remarkably paying jobs. It is founded in an environment where construction expenses make inventory addition harder. And due to all these factors, we are confident that properties in Fort Collins will continue to appreciate.