The S&P Corelogic Case-Shiller Home Price Index reported Tuesday that home prices in Denver continued their hot streak in July, hitting the highest level for year-over-year gains.
Denver’s home price index rose 21.3% making it one of seven US cities to record its highest gain of 12 months. The other cities according to the index were New York, Boston, Charlotte, Cleveland, Dallas and Seattle.
Overall, the West was burning. Phoenix, San Diego and Seattle were among the 20 cities with the highest gains year-over-year. Phoenix led with 32.4%; San Diego was in second place with 27.8%; And Seattle was in third place with 25.5%.
Craig J., managing director and global head of index investment strategy at S&P DJI. “July 2021 is the fourth consecutive month in which the growth rate of housing prices has set a record,” Lazara said in a statement.
The national price increase of 19.7% from July 2020 was the highest annual gain in more than 30 years, Lazara said. It also marks the 14th consecutive month of rally in prices.
In Denver, home prices rose 1.8% from June to July. The national index had a seasonally adjusted monthly gain of 1.5%.
“We have previously suggested that strength in the US housing market is being driven by the response to the COVID pandemic, as potential buyers move from urban apartments to suburban homes. The July figures are in line with this hypothesis,” Lazara said.
On the housing rental side, the trend continues to be upwards as well. According to a monthly survey by ApartmentList, an online marketplace, rents increased 2.7% in Denver from August to September. Rents increased by 16.5 per cent from the same period a year ago.
The median rent in Denver is $1,501 for a one-bedroom apartment and $1,839 for a two-bedroom unit, compared to the national average of $1,275. September was the eighth-straight month that rents increased after a drop in January.
Statewide, rents were 17.2% higher than in September 2020, the apartment list said. Fares have increased in the metro area. The fastest growth was in Parker, where rents increased by 22.1% over the previous year.
The metro area city with the most expensive fares is Lone Tree. The median rent for a two-bedroom residence is $2,482. Arvada has the lowest average rent in the metro area at $1,653 for a two-bedroom.