Trends in Multigenerational Living in Denver
The Denver real estate market trends in 2024 are seeing significant changes, particularly with the rise of multigenerational living and shifting dynamics amid the seasonal slowdown. As economic pressures, caregiving needs, and cultural traditions shape housing decisions, the Denver metro area is at the forefront of these trends.
Multigenerational living is rising across Colorado, particularly in the Denver metro area, driven by economic pressures, caregiving needs, and cultural traditions. As the cost of living and housing prices continue to soar, more families choose to live together under one roof. According to 2020 Census data, about 3.7% of Colorado households are multigenerational, representing a nearly 40% increase over the last decade.
For many, this living arrangement offers practical benefits. Pooling resources can help families manage the high cost of housing, with the median price of a single-family home in Denver reaching $660,000 in July 2024, up from $290,000 a decade ago. Multigenerational households also provide built-in support systems, making caring for aging parents or young children easier. This dynamic alleviates financial stress and enhances emotional connections within families.
Cultural factors also play a significant role in the rise of multigenerational living. Communities with family-oriented solid values are more likely to embrace this living arrangement. In these communities, living together is often seen as a way to preserve cultural traditions, language, and close-knit family bonds.
This trend is reshaping the real estate market in the Denver area. More homebuyers are seeking properties with flexible layouts, such as homes with separate living areas or in-law suites, to accommodate multiple generations comfortably. Developers are responding by designing homes that cater to these needs, making multigenerational living more accessible and appealing.
While multigenerational living can offer many benefits, it also comes with challenges. Families must navigate the complexities of sharing space, managing caregiving responsibilities, and maintaining privacy. However, for many, the advantages of this lifestyle outweigh the drawbacks, making it an increasingly popular choice in today’s housing market.
As Denver’s housing market evolves, multigenerational living will likely become more prevalent. For those considering this option, it’s essential to understand the dynamics and plan accordingly to create a harmonious and supportive living environment. Whether driven by necessity or choice, multigenerational living shapes the future of housing in Denver and beyond.
Unpredictable Trends and Shifting Dynamics Amid Seasonal Slowdown
July is the time of year when we historically see the Denver real estate market slowdown. Real estate transactions often take a back seat with kids out of school, people on vacation, and others enjoying the city’s warm weather and outdoor activities. However, the market has been as unpredictable this year as Denver’s weather. As the saying goes, if you don’t like the weather, wait five minutes—a sentiment that seems equally applicable to the housing market. Sellers may need to exercise patience, as even excellent properties can sit on the market, while less remarkable homes sell quickly, leaving many scratching their heads.
Many local real estate agents feel we are transitioning into a buyer’s market. This shift is difficult to define, as the pandemic has upended our traditional understanding of what constitutes a seller’s market versus a buyer’s market. Statistics suggest we are moving toward a balanced market (4-6 months of inventory), with 2.86 months of inventory steadily increasing throughout the year. However, in specific price ranges and neighborhoods, the market has become a buyer’s market due to various options. It’s important to remember that real estate is hyperlocal, and many factors can influence each home for sale. Beyond the usual aspects like location, size, and condition, factors such as interest rates and the size of the buyer pool can make one home a hot commodity while another sees less interest.
Active listings rose 3.62 percent month over month and an impressive 68.03 percent year over year, reaching 10,584. Year to date, active listings have increased between 44 percent and 161 percent compared to the previous three years. However, to put this in perspective, the average number of active listings for July from 1985 to 2023 is 15,502. The record high for July was in 2006, with 31,989 listings; the record low was in 2021, with just 4,056 listings. Historically, the average increase in active listings from June to July is 5.41 percent. This July’s 3.62 percent increase suggests a slower-than-expected rise, indicating that our seasonal inventory peak may be approaching. Meanwhile, pending sales remained relatively steady, with a slight 0.18 percent decrease to 3,896, and closed sales dropped by 5.19 percent to 3,708.
Info for Sellers
Buyers are becoming increasingly practical and discerning, appreciating improvements and upgrades related to energy, water, and space efficiency. In July, many buyers found their dream homes and negotiated fair purchase contracts as sellers felt the pressure of longer days on the market. With rising inventory levels, buyers have been able to negotiate more favorable deals, resulting in the lowest close-price-to-list-price ratio seen year-to-date since July 2020. Sellers now are the time to highlight your property’s unique features and upgrades and price it competitively to attract discerning buyers. Don’t miss the opportunity to stand out in this shifting market!
Info for Buyers
As the summer selling season winds down in August, the changing marketplace provides an ideal opportunity for buyers. With increased leverage in negotiations, this period offers a prime chance to find a new home before prices rise again. If you’re in the market, now is the time to act—take advantage of the favorable conditions and secure the best deal on your new home!
