All Access

All-Access Weekly Digest

Standard

Denver

Denver Alerts

Alert

Picture of the Denver skyline with DEN written across it.

blue

A daily look at the most significant and interesting stories affecting Denver.

Axios Denver

Get smarter, faster about what’s happening in your backyard with local reporters John Frank, Alayna Alvarez and Esteban L. Hernandez.

Axios Denver Thought Bubble

Thought Bubble

A guide to fun things to do in Denver this weekend.

Axios Denver Weekender

Weekender

Axios Denver Deep Dive

Deep Dive

Denver Members

Membership

Data: RentCafe; Note: Includes buildings with 50 or more units; Table: Kavya Beheraj/Axios

Roughly 12,580 new apartment units are expected to be completed across Denver this year, up from 10,873 in 2020, according to a new report.

Why it matters: A housing shortage in the U.S. has contributed to the rising cost of both renting and buying.

What's happening: Denver is among the top 20 metros where roughly 41% of U.S. renters live, per the report by RentCafe, which analyzed data from real estate intelligence service Yardi Matrix.

A historic surge in new apartment supply — 1.2 million units were completed during the pandemic — helped slow rent growth nationwide.

The big picture: Nearly three-fourths of renters say they're renting in an area where they couldn't afford to buy, according to a new survey from RealPage, a real estate analytics and software company.

Yes, but: Around 89% of the U.S. units completed from 2020 through 2022 are high-end, per the report, and not the type of affordable apartments many renters want.

Go deeper: Denver luxury apartments grow even more luxe

What they're saying: Steep mortgage rates and homeowners association fees have kept Jessica Thomas stuck renting in Denver, where she's been looking to buy for the last two years, Sami reports.

"I thought I'd be in my own home by now," Thomas tells Axios.

Reality check: Affordability isn't the only reason people rent. Thomas, who lives alone, says she likes that maintenance is someone else's responsibility.

What's next: Across the U.S., 1 million rental units are slated for completion through 2025, but higher costs and other headwinds could slow developers' pace in future years.

"Tightening of bank lending standards — combined with rising costs of construction materials, labor and land — has made new projects harder to pencil," senior analyst Doug Ressler at Yardi Matrix says in the report.

Expect more apartments across Denver

Around 12,580 apartments are expected to be completed in 2023.

Real estate

Roughly 12,580 new apartment units are expected to be completed across Denver this year, up from 10,873 in 2020, according to a new report.Why it matters: A<a class="gtmContentClick" data-vars-link-text=" housing shortage" data-vars-click-url="https://www.axios.com/2023/06/20/housing-shortage-prices-high" data-vars-content-id="3141f563-91cf-49a7-ae46-36fe79ce956a" data-vars-headline="Expect more apartments across Denver" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/06/20/housing-shortage-prices-high" target="_self"> housing shortage</a> in the U.S. has contributed to the rising cost of both renting and buying.

Real Estate

Axios Denver, anchored by John Frank and Alayna Alvarez, is here to help readers get smarter, faster on the most consequential news and developments unfolding in their own backyard.

In this housing market, Denver buyers aren't going to settle for homes requiring major renovations.

Why it matters: Homebuyers already hampered by gravity-defying prices and mortgage rates don't want to spring for someplace that looks like an HGTV "before" photo.

What's happening: With mortgage rates doubling in such a short time period, buyers' budgets have shrunk significantly, agent David DiPetro tells Axios.

When rates were at 3%, a buyer might have been looking at a $1 million price point. Now, with rates above 6%, their budget is closer to $750,000.

They're going to be pickier because their budget doesn't get them as much house as it did 18 months ago, DiPetro explains.

What they're saying: To get your house ready for market, Compass agent Kelly Moye recommends spending the bulk of your budget on the kitchen, baths and landscaping.

"If the kitchens and baths shine, people tend to look over other outdated features," Moye says.

Be smart: DiPetro has a few tips for how and where to invest your reno budget.

🏡 Revamp the exterior. Paint your house and do some light landscaping to get buyers in the door.

🚰 Update appliances. A full kitchen reno can cost a pretty penny ($30,000-$50,000). Instead, invest in modern appliances to win over buyers at a fraction of the cost.

💡Lighting. No one likes poor, yellow lighting. Replace your old bulbs with brighter LED lights.

The big picture: Self-identified fixer-uppers are typically selling for less, and more slowly, than expected, according to Zillow data shared with Axios.

Across the U.S., listings that mention the phrase — just 0.3% of sales in the first half of the year — sold at a 3.1% discount and took 3.2 days longer to sell relative to expectations, the data shows.

Listings pegged as "remodeled" or "renovated," which accounted for 24.1% of U.S. sales, sold at a 1.2% premium and 1.8 days faster than expected.

Zoom in: Listings that mention "fixer-upper" comprised 0.2% of Denver-area sales in the first half of 2023, per the Zillow data, while those advertised as "remodeled" or "renovated" made up 29.7%.

"Most homebuyers right now simply don't have enough money left over to invest in major repairs or remodeling," Redfin deputy chief economist Taylor Marr tells The Wall Street Journal.

Data: Redfin; Note: Metro divisions are subdivisions of metropolitan areas; Chart: Axios Visuals

By the numbers: Roughly 51% of Denver-area homes in July were snapped up in two weeks or less, according to Redfin data shared with Axios.

Zoom out: Nationwide, around 41% of listings were marked pending, contingent or sold within that window, Redfin found.

State of play: Houses that stay on the market for more than a month are usually overpriced or in need of major work, according to Redfin's Taylor Marr.

Denver homes go off-market after a median of 12 days, compared to eight days a year ago, per the real estate brokerage.

This green-carpeted University Hills home is described as "great candidate for a remodel" or tear down. It's listed at $1.35 million and has been on the market for a whopping 410-plus days.

A $3 million home in Washington Park that's "ready for a creative transformation" has been on the market for more than 185 days.

Go deeper: Americans' homes are worth more than ever, but tapping into that value isn't easy

Denver buyers don't want your fixer-upper

Homebuyers already hampered by gravity-defying prices and mortgage rates don't want to spring for someplace that looks like an HGTV "before" photo.

Illustration of two hammers forming an "X" shape. 

In this housing market, Denver buyers aren&#x27;t going to settle for homes requiring major renovations.Why it matters: Homebuyers already hampered by <a class="gtmContentClick" data-vars-link-text="gravity-defying prices" data-vars-click-url="https://www.axios.com/2023/08/17/housing-prices-affordability-rise-fall-2023-goldman-sachs" data-vars-content-id="3b3c90a7-0199-4686-a6ed-567c1271a207" data-vars-headline="Denver buyers don&#x27;t want your fixer-upper" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/08/17/housing-prices-affordability-rise-fall-2023-goldman-sachs" target="_self">gravity-defying prices</a> and <a class="gtmContentClick" data-vars-link-text="mortgage rates" data-vars-click-url="https://www.axios.com/2023/08/22/mortgage-rates-current" data-vars-content-id="3b3c90a7-0199-4686-a6ed-567c1271a207" data-vars-headline="Denver buyers don&#x27;t want your fixer-upper" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/2023/08/22/mortgage-rates-current" target="_self">mortgage rates</a> don&#x27;t want to spring for someplace that looks like an <a class="gtmContentClick" data-vars-link-text="HGTV &quot;before&quot; photo" data-vars-click-url="https://www.youtube.com/watch?v=z6cl4UrijVM" data-vars-content-id="3b3c90a7-0199-4686-a6ed-567c1271a207" data-vars-headline="Denver buyers don&#x27;t want your fixer-upper" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.youtube.com/watch?v=z6cl4UrijVM" target="_blank">HGTV &quot;before&quot; photo</a>.

Before you tackle that home renovation you've been dreaming or dreading, think about how it could affect the resale value.

Why it matters: Denver sellers need to rake in all the cash they can if they're leaving record-low mortgage rates.

Metro area homes lost an estimated $5 billion in housing value over the same period as mortgage rates rose, Zillow reports.

By the numbers: Eight of the top 10 projects that command the highest return on investments in the U.S. are exterior changes, from fixing up the garage to replacing windows, per data Angi shared with Axios.

In the Denver area, replacing a garage door or a front door — two of the cheaper projects — costs around $1,000 on average.

A minor kitchen remodel will set back Denver homeowners $24,389 on average.

Photo: Nate Polta, courtesy of David Bell

Zoom in: Real estate agent David Bell bought an investment property in 2021. After eight months and $170,000, the Virginia Village home has a completely fresh feel.

He worked with Art Kerkezian of ArtWork Homes for the project, which includes new wiring and windows, fresh flooring, a brand new kitchen, a professionally landscaped yard and contemporary finishes.

Yes, but: Before you get to the glamorous projects like new kitchens, you need to access "things you can't see like, electrical, plumbing and sewer," he says.

The exterior of the home before the upgrades. Photo: Courtesy of David Bell

The big picture: The type of project you should prioritize depends on how long you'll be in the house, says Angie Hicks, chief customer officer at Angi.

If you plan to stay at least five years, go ahead and spring for your dream kitchen.

If you're selling in the next year, it might be time to roll your sleeves up and tackle less sexy projects (think: finally fixing that leaky faucet).

Reality check: Higher interest rates make tapping into home equity more expensive, Axios' Emily Peck reports.

Be smart: You shouldn't expect to earn every penny back on things like a new roof or A/C unit. Today's buyers expect the basics to work, Hicks says.

Here are Hicks' other top tips for getting the highest ROI:

🏡 Consider your neighborhood. If every house has 2.5 bathrooms, you might not need to convert that half to a full.

🌷 Invest in curb appeal. Replace your garage door, paint your front door, spruce up your landscaping.

🏠 Neutralize. If you're selling soon, it's not the time for a funky accent wall — it's time for fresh, neutral paint.

How to increase home resale value in Denver

Eight of the top 10 projects with the highest ROI are exterior upgrades.

Before you tackle that home renovation you&#x27;ve been dreaming or dreading, think about how it could affect the resale value.Why it matters: Denver sellers need to rake in all the cash they can if they&#x27;re <a class="gtmContentClick" data-vars-link-text="leaving record-low mortgage rates" data-vars-click-url="https://www.axios.com/local/denver/2023/07/08/housing-supply-colorado-mortage-rates" data-vars-content-id="80a196bb-7599-4fca-b8e9-6adb36d0a581" data-vars-headline="How to increase home resale value in Denver" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/denver/2023/07/08/housing-supply-colorado-mortage-rates" target="_self">leaving record-low mortgage rates</a>.<ul><li>Metro area homes lost an estimated $5 billion in housing value over the same period as mortgage rates rose, <a class="gtmContentClick" data-vars-link-text="Zillow" data-vars-click-url="https://www.zillow.com/research/total-market-value-2023-33031/" data-vars-content-id="80a196bb-7599-4fca-b8e9-6adb36d0a581" data-vars-headline="How to increase home resale value in Denver" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.zillow.com/research/total-market-value-2023-33031/" target="_blank">Zillow</a> reports.</li></ul>

Converting empty Denver buildings into apartments is one way the city is hoping to bring people back to our urban core.

Why it matters: Cities across the nation are scrambling to revitalize downtowns in a post-pandemic world by turning office and hotel buildings into apartments.

Driving the news: The city hired global design and architecture firm Gensler to take a look at 30 buildings downtown to see if they're a good fit for an office-to-apartment pivot, says Alexandra Foster with Denver Community Planning and Development.

What they're saying: "There have been office to residential conversions — 1600 Glenarm is one example — but they were not constructed in the current economic and regulatory climate," Foster says.

Zoom in: Art Studios apartments is another example. The apartment building, formerly the Art Institute of Colorado in Capitol Hill, has units available starting Aug 15.

Rent starts at $1,335 for a 245-square-foot studio.

The intrigue: Denver's time is coming. We rank No. 9 out of 10 cities for the most future office conversions, according to figures shared by RentCafe.

What's next: Results from the Gensler study are expected to be ready in late August. The city will talk with building owners and developers about potential conversion based on its findings.

The office-to-apartment boom is bubbling in Denver

So far, Denver isn't leading the nation in apartment conversions, but Colorado has entered the chat.

Illustration of a hand holding a key surrounded by abstract shapes. 

Converting empty Denver buildings into apartments is one way the city is hoping <a class="gtmContentClick" data-vars-link-text="to bring people back to our urban core" data-vars-click-url="https://www.axios.com/local/denver/2023/08/10/downtown-denver-recovery-foot-traffic-pandemic" data-vars-content-id="d94ebe49-1dc8-4419-bdb4-29927f37d4ad" data-vars-headline="The office-to-apartment boom is bubbling in Denver" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/denver/2023/08/10/downtown-denver-recovery-foot-traffic-pandemic" target="_self">to bring people back to our urban core</a>.Why it matters: Cities across the nation are scrambling to revitalize downtowns in a post-pandemic world by turning office and hotel buildings into apartments.

Peaked rooflines, board and batten siding, vertical double-hung windows and an open floor plan — those are the hallmarks of a modern farmhouse trend that's taken over, says Angela Feddersen, principal of Denver's Elevate Architecture.

Why it matters: Modern farmhouses have dethroned McMansions as the suburban dream home.

Driving the news: The breezy, neutral style was popularized 10 years ago when Chip and Joanna Gaines launched HGTV's "Fixer Upper."

What they're saying: Introducing "natural reclaimed wood beams [and having] fun with color including large-scale wallpaper or three-dimensional tile" can help homeowners make the style their own, Feddersen told Axios. You don't need to stick to the popular white and soft black exterior finishes.

The big picture: Retailers and homebuilders jumped on the bandwagon to give consumers what they want.

Target's home goods section is stocked with farmhouse-inspired Magnolia and Studio McGee collections.

The style dominates new-build communities around the country.

Of note: Some design experts predict the trend is here to stay.

The ease of replicating the look "has played a significant role in the phenomenon of the modern farmhouse," says Veronica Valencia, host of HGTV's "Revealed."

"As a homeowner, when you look at a simple modern farmhouse room, you immediately feel like, 'Oh! I can tackle that!' There are no bells and whistles to it. … It's simple and familiar," Valencia says.

If you want to incorporate the style at home, here are Valencia's top tips:

🪑 Accessorize with antiques and modern lighting.

🖼 Frame large, contemporary prints with natural wood.

🔨 Install shiplap vertically instead of horizontally, and then paint with your favorite color.

Some experts have already declared the death of the modern farmhouse movement, but Pinterest searches related to the style have exploded since last summer.

Between the lines: The average consumer isn't ready to quit the approachable style.

What they're saying: "Pinners are also putting their own spin on the trend to make spaces feel like their own," says Swasti Sarna, global director of data insights at Pinterest.

"Moody farmhouse" and "vintage farmhouse" are both trending.

Modern farmhouse design dominates Denver suburbs

Notice more peaked rooflines, vertical windows and open floor plans?

Interior of a home with white walls, wooden flooring, vertical windows and an open floor plan

Elevate Architecture gave this home new siding, windows, doors and an open floor plan in the modern farmhouse style. Photo: Courtesy of JC Buck

Housing

Peaked rooflines, board and batten siding, vertical double-hung windows and an open floor plan — those are the hallmarks of a modern farmhouse trend that&#x27;s taken over, says Angela Feddersen, principal of Denver&#x27;s <a class="gtmContentClick" data-vars-link-text="Elevate Architecture" data-vars-click-url="https://elevatearch.com/" data-vars-content-id="e02d01bc-70d3-47fe-87b1-4b0fb7e68600" data-vars-headline="Modern farmhouse design dominates Denver suburbs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://elevatearch.com/" target="_blank">Elevate Architecture</a>.Why it matters: Modern farmhouses have <a class="gtmContentClick" data-vars-link-text="dethroned McMansions" data-vars-click-url="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" data-vars-content-id="e02d01bc-70d3-47fe-87b1-4b0fb7e68600" data-vars-headline="Modern farmhouse design dominates Denver suburbs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.nytimes.com/2023/07/07/realestate/modern-farmhouse-suburbs.html" target="_blank">dethroned McMansions</a> as the <a class="gtmContentClick" data-vars-link-text="suburban" data-vars-click-url="https://www.axios.com/local/denver/2023/06/10/denver-colorado-suburb-real-estate-home-prices" data-vars-content-id="e02d01bc-70d3-47fe-87b1-4b0fb7e68600" data-vars-headline="Modern farmhouse design dominates Denver suburbs" data-vars-event-category="story" data-vars-sub-category="story" data-vars-item="in_content_link" href="https://www.axios.com/local/denver/2023/06/10/denver-colorado-suburb-real-estate-home-prices" target="_self">suburban</a> dream home.

Brianna Crane

Featured stories

How to increase home resale value in Denver

Expect more apartments across Denver

Denver buyers don't want your fixer-upper

Modern farmhouse design dominates Denver suburbs

The office-to-apartment boom is bubbling in Denver