There is no denying that the Colorado real estate market has been one of the hottest in the nation. In fact, between 2010 and 2018, Colorado’s population grew by 13.25%, making it the fourth fastest growing state (only Utah, Texas, and Florida grew by a larger percentage). The current population of Colorado is over 5.7 million, which has helped increase home values in almost every major market.
Living in Colorado is something that many people dream about for their entire lives. Between the beautiful Rocky Mountains, four National Parks, and a distinctively Western character, there are few places (if any) in the nation that are able to emulate Colorado’s natural draw. However, deciding to move to Colorado is one thing. With more than 104,000 square miles of land to choose from, it will also be important to think about where you hope to live.
Currently, both Boulder and Denver are two of the most popular real estate markets in Colorado. These cities have very strong characters and, despite the fact they are located less than 30 miles away from one another, there are quite a few things that make them unique. Doing plenty of research before making your final decision will be very important.
In this article, we will compare the benefits of living in Denver and the benefits of living in Boulder. We will also specifically focus on the recent performance of the luxury real estate markets, which—though highly correlated with general property values—can sometimes experience deviating trends. By taking time to compare your options, you will be able to know where in the Centennial State will be best for you to call home.
Getting to Know Boulder
The history of Boulder dates back to early frontier days, where many optimistic miners began their search for gold and other valuable minerals. Since then, the city has experienced many major changes, beginning with the founding of Colorado’s flagship University (the University of Colorado) in 1876. The University plays a major role in shaping Boulder’s character, though there are still plenty of other icons that make Boulder a very unique place to live.
Boulder is well-known for its outdoor recreation opportunities. The Flatirons, Chautauqua Park, Boulder Creek, and Boulder Reservoir are all very accessible recreation areas with plenty of things to do. Additionally, Boulder Canyon and nearby Eldora Mountain (Nederland, CO) help promote the outdoor recreation scene even further. Bike paths, general walkability, Pearl Street, controlled development, and a generally progressive culture help round out the city’s very distinctive character. While Boulder is sometimes grouped with Denver for statistical purposes, the Boulder Metropolitan Area has an independent population of about 315,000.
Getting to Know Denver
Denver is the capital and largest city in the State of Colorado and is undeniably one of the core places for experiencing Colorado culture. Located at the intersection of the Great Plains and Rocky Mountains, Denver is readily accessible. In addition to having one of the world’s highest volume airports (Denver International Airport), Highway 70—which passes right through Denver—makes it possible for residents to access some of the best ski resorts, hiking trails, bike paths, and climbing walls in the world.
The job market in Denver has been rapidly developing, as has the transportation infrastructure and many of the city’s downtown neighborhoods. Luxury real estate in Denver have risen in demand significantly over the past few years. Neighborhoods such as Cherry Creek, Capitol Hill, LoDo, Washington Park, and Five Points have all attracted a considerable amount of attention and development. Denver is also home to the famous 16th Street Mall, many of Colorado’s top museum, five major sports teams, and many distinctive elements of Western American culture. To many people, this roughly 3 million person metropolitan area—currently ranked as 20th in the country—is the place to live in Colorado.
The Showdown
Both Boulder and Denver are very attractive places to live, meaning that you can’t really “go wrong” regardless of where you choose to lend up. Depending on your personal situation, however, there are a few important variables that you might want to consider.
· Taxes, Fees, and Cost of Living: while Boulder has a property tax rate of 0.54%, Denver has a property tax rate of 0.56%. Both of these rates are among the lowest in the nation. Boulder—according to CPI—still has a marginally higher cost of living. Boulder also has a marginally higher sales tax rate (8.8% versus 8.3%).
Advantage: Denver
· Increase in luxury property values: luxury properties in Denver and Boulder have both been performing well in recent years. But while luxury properties in Boulder County increased in value by 13.7% last year, Denver County properties increased in value by 10.6%.
Advantage: Boulder
· Access to the luxury property market: luxury property is defined as the top 5% most valuable homes in an area. To land in this range in Denver, your home must be worth $1,026,000. Boulder, on the other hand, has a $1,344,000 cut-off. Because Boulder also has a larger amount of zoning and building restrictions, access to the luxury market will be even harder to come by in the future.
Advantage: Denver
· Walkability: as a smaller city, Boulder is typically much easier to walk (or bike) around. The city also has a great mixture of residential buildings, commercial buildings, and greenspace. While Denver is walkable compared to other cities of its size, it may be too large for some luxury homeowners who prefer to travel by foot.
Advantage: Boulder
· Things to do: both cities have excellent art, music, culinary, and cultural scenes. But Denver also has professional sports, more museums, and a wider range of options to choose from. Denver is also closer to most ski resorts and other outdoor recreation opportunities.
Advantage: Denver
· School Districts: both Boulder and Denver school districts typically perform above the national average. But while every Boulder school district is highly rated, there are a few in Denver that perform right around the state average (even in some neighborhoods with luxury homes).
Advantage: Boulder
· The Power of $1 million: accessing the luxury real estate market in both cities will require about $1 million in capital. But when you compare these luxury home markets, Denver luxury homes offer more square feet per dollar. While this does vary by neighborhood, Denver is considered the more affordable option.
Advantage: Denver
As you can see, both Denver and Boulder have their fair share of living advantages. Other important factors to consider will include your commute to work, the location of your friends and family, as well as personal luxuries you want within reach. As the Colorado luxury real estate market continues to expand, you will inevitably have more options to choose from.
Conclusion
Before you get too excited about your big move to Colorado, it will be worthwhile for you to orient yourself with the living dynamics of the Front Range region. Denver and Boulder are consistently grouped together, but there are still quite a few things that make each location have a personality of its own. By using this brief list, you can help decide which luxury real estate market can best satisfy your needs.
