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Highland, Denver: Rising Home Values and Shifting Ownership Patterns in a Dynamic Neighborhood
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
Highland, a vibrant neighborhood in Denver, Colorado, has undergone significant changes in its housing market over the past decade. This area has experienced a notable shift in homeownership rates, alongside substantial increases in both average home prices and average rent prices. The neighborhood has transformed from a relatively balanced mix of owners and renters to a predominantly renter-occupied community, while property values have soared.
The trend in homeownership rates in Highland has been steadily declining since 2013. In 2013, 48% of housing units were owner-occupied. This figure decreased to 37% by 2022, representing a significant shift in the neighborhood's housing tenure. Concurrently, average home prices in Highland have experienced remarkable growth. In 2013, the average home price was $359,229. By 2022, this figure had more than doubled to $788,685, marking a 119.5% increase over nine years. This inverse relationship between decreasing homeownership rates and rising home prices suggests that the increasing cost of homes may be pricing out potential buyers, contributing to the shift towards renting.
Federal interest rates have played a role in homeownership trends in Highland. From 2013 to 2016, when interest rates were historically low (ranging from 0.11% to 0.40%), homeownership rates in Highland actually declined from 48% to 44%. This suggests that other factors, such as rapidly increasing home prices, may have outweighed the potential benefits of low interest rates for potential homebuyers in this neighborhood.
As homeownership rates decreased, the percentage of renters in Highland increased from 52% in 2013 to 63% in 2022. During this same period, average rent prices also rose significantly. In 2013, the average rent was $1,543 per month. By 2022, it had increased to $1,879, representing a 21.8% increase. This rise in rent prices, while substantial, was not as dramatic as the increase in home prices. The growing renter population, coupled with rising rent prices, indicates a strong demand for rental properties in the neighborhood, possibly driven by those priced out of the homebuying market.
In 2023 and 2024, the housing market in Highland showed signs of stabilization. The average home price in 2023 was $773,759, a slight decrease from 2022. In 2024, the average home price increased marginally to $777,554. This period coincides with higher federal interest rates, which reached 5.02% in 2023 and 5.33% in 2024, potentially contributing to the cooling of home price growth.
Looking ahead, predictive models suggest that average home prices in Highland may continue to rise, but at a more moderate pace. Over the next five years, average home prices could potentially reach around $850,000 to $900,000, assuming current economic conditions persist. Average rent prices are also expected to increase, potentially reaching $2,200 to $2,400 per month within the same timeframe.
In summary, Highland has undergone a significant transformation in its housing market. The neighborhood has shifted from a balanced mix of owners and renters to a predominantly renter community, with homeownership rates declining from 48% to 37% between 2013 and 2022. This change has occurred alongside substantial increases in both average home prices and rent prices. The recent stabilization of home prices in 2023 and 2024, coupled with higher interest rates, suggests a potential cooling of the market. However, the long-term trend indicates continued growth in both home values and rent prices, albeit at a more moderate pace.
