Prices for Boulder CO real estate and rent continue to rise
(I thought it might be worth pulling back the curtain a little and peeking behind the scenes.)
If you havent read my Boulder Real Estate Bubble post from January 2015, you might find it interesting too. I’m not an alarmist. If you choose to buy or sell your property with me, it won’t be because you are afraid of up-coming real estate impacting events, fearful of missing opportunities or because I gave you the impression the only prudent thing to do is act now – with me. Instead, you will be armed with information – the pro’s and the con’s – and will have the confidence to make decisions for yourself that are in your best interests.
You control the decisions. I control the process. Together we get you from A to B while reducing your drama, stress and risk.
Let’s see what is going on locally right now and what could possibly influence the rental and the real estate buy/sell market in 2015/2016:
Boulder is intensely re-assessing its zoning and permitting practices. There is a moratorium on building any new building higher than 4 stories and a temporary moratorium on building any new student housing on The Hill right now.
The VRBO and AirBnB topic is on City Councils agenda for the first quarter this year. Will we see rental inspections and licensing like other rental properties must have in Boulder? Perhaps a 10% hotel tax to bring in line with hotels in Boulder?
The top 10 Boulder County apartment building sales through December 9th, 2015:
- Two Nine North (1925 30th St, Boulder) sold for $93.5 million
- Wyndham Apartments (2540 Sunset Dr, Longmont) sold for $51 million
- The Boulders (2850 Kalmia Ave, Boulder) sold for $44.2 million
- Balfour (1331 Heccla Drive, Louisville) sold for $40.25 million
- Strathmore Park Apts (440 Strathmore Ln, Lafayette) sold for $39.9 million
- Balfour (1855 Plaza Dr, Louisville) sold for $33.275 million
- Wildwood Apartment Homes (3226 Lake Park Wy, Longmont) sold for $30.55 million
- Uptown Broadway (4590 13th St, Boulder) sold for $26.9 million
- Peaview (Ardienne) Apartments (601 Merlin Dr, Lafayette) sold for $25.25 million
Brickstone Partners paid $18.35 million for the apartment complex currently known as Marine Park Apartments. This 92 unit complex is located at 1155 Marine st and according to the Colorado Real Estate Journal, it will be extensively remodeled and renamed simply “11 Fifty Five”. It’s location puts it near downtown and CU.
Aimco bought Eastpointe Apartments in Boulder, for $18 million. This 140 unit complex is located at 1550 Eisenhower, on the east side of town near Foothills hospital, an easy commute out of town, with proximity to bike baths and amenities springing up in the area.
This year, Boulder is charged with balancing growth and opportunity, while with listening to the desire that current residents have, to hold onto the character, history and affordability that drew people here to begin with. Only time will tell how possible new developments like Google’s planned Boulder Campus, Pearl Place, the Golden Buff redevelopment and Reve Pearl will impact the rental and real estate market.
Right now, the new developments I see, are not inexpensive rental options. but supply and demand drives prices, so I’m going to draw your attention to graphic you may have seen me publish before:
Regardless of whether you are personally for or against high density construction in Boulder CO, this build out is following the natural cycle that a market undergoes.
There was a recession and new demand for rentals was initiated. With a smaller supply than demand, rent prices went up. After a little lag to get new construction going, we sought to meet the demand by supplying more units. The peak of the curve is our brief equilibrium – the time when all our needs are met and we haven’t added more supply than there is demand for… Then our supply pushes higher prices start to reset a little. (Instead of renters/buyers competing with each other, builders/sellers compete with each other.) If rents go down, a property is not worth as much to an investor perhaps and buyers cool off too.
Boulder needs to be watched in the coming 2 years!
By the way… Am I dating myself by saying that “high end student housing” was an oxymoron when I went to school? 🙂