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Dakota Ridge: Rising Home Values and High Ownership in Colorado's Suburban Gem
CATEGORY
Property Value
DATA
Percent Owner Occupied
Housing Prices
Median Rent
Population
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Property Value
Percent Owner Occupied
Housing Prices
Median Rent
Population
Dakota Ridge, Colorado, is a vibrant community located in Jefferson County. This suburban area has experienced notable changes in homeownership rates, average home prices, and average rent prices over the past decade. The city has maintained a high rate of homeownership, with average home prices showing significant growth and average rent prices steadily increasing.
Homeownership in Dakota Ridge has remained consistently high, ranging from 82% to 84% between 2013 and 2022. During this period, average home prices have shown a substantial upward trend. In 2013, the average home price was $275,126, which increased to $626,182 by 2022, representing a remarkable 127.6% growth over nine years. This sharp rise in home values coincided with relatively stable homeownership rates, suggesting that existing homeowners benefited from appreciating assets while new buyers faced increasingly challenging market conditions.
Federal interest rates have played a significant role in shaping homeownership trends. From 2013 to 2016, interest rates remained exceptionally low, hovering between 0.09% and 0.40%. During this period, homeownership in Dakota Ridge stayed steady at around 83%. As interest rates began to rise from 2017 to 2019, reaching 2.16%, homeownership actually increased slightly to 84%, possibly due to buyers rushing to secure mortgages before rates climbed further. The sudden drop in interest rates to 0.08% in 2021 coincided with a continuation of the 84% homeownership rate, likely supporting sustained high levels of ownership.
Renter percentages in Dakota Ridge have fluctuated slightly, ranging from 16% to 18% between 2013 and 2022. Average rent prices have shown a consistent upward trend during this period. In 2013, the average rent was $1,492, which increased to $1,915 by 2022, representing a 28.4% increase. The population of Dakota Ridge has remained relatively stable, growing from 34,436 in 2013 to 34,234 in 2022, suggesting that rising rent prices were not primarily driven by population growth but rather by other market factors.
In 2023 and 2024, Dakota Ridge experienced a slight dip in average home prices followed by a recovery. The average home price in 2023 was $615,885, showing a 1.6% decrease from 2022. However, in 2024, prices rebounded to $625,562, nearly reaching the 2022 level. This recovery occurred despite federal interest rates rising to 5.33% in 2024, indicating strong underlying demand in the housing market.
Looking ahead, based on historical trends and current market conditions, we can forecast potential 5-year trends for average home and rent prices in Dakota Ridge. Average home prices are likely to continue their upward trajectory, potentially reaching around $750,000 by 2029, assuming a moderated growth rate of about 4% annually. Average rent prices may also continue to rise, potentially reaching approximately $2,200 by 2029, based on a projected annual increase of about 3%.
In summary, Dakota Ridge has maintained a high rate of homeownership despite significant increases in average home prices. The community has demonstrated resilience in the face of fluctuating interest rates and economic conditions. Rent prices have also shown steady growth, albeit at a slower pace than home prices. The recent rebound in home prices, even with higher interest rates, suggests a robust local housing market that is likely to continue evolving in the coming years.
