There’s a the age old question everyone thinks about when they decide to move to a city in Colorado:
Should I buy a place or rent?
Well, we aren’t here today to solve that problem for you exactly. We are just assuming you’ll do the right thing and a buy a place 😉
And while we are happy to tell you the best place to live in Colorado, this analysis is going to tackle the question of the best place to buy a house as an investor. That is we are going to try and determine the up and coming cities in the Centennial State.
To do that we are going to look at places in Colorado that are growing faster than average, but where home prices are below average. In every day terms, the “deals”.
The best deal in Colorado at the moment? That would be Lochbuie according to our analysis.
Here’s a look at the top ten places to buy a home in Colorado for 2019:
- Lochbuie (Photos | Homes For Sale)
- Glendale (Photos | Homes For Sale)
- Federal Heights (Photos | Homes For Sale)
- Brighton (Photos | Homes For Sale)
- Frederick (Photos | Homes For Sale)
- Commerce City (Photos | Homes For Sale)
- Firestone (Photos | Homes For Sale)
- Aurora (Photos | Homes For Sale)
- Greeley (Photos | Homes For Sale)
- Gypsum (Photos | Homes For Sale)
The methodology that wen’t into this can be a bit complicated, so we’ll break it down for you in as much detail as we can below.
For more Colorado reading, check out:
- These Are The 10 Best Counties To Live In Colorado
- 10 Best Places To Raise A Family In Colorado
- These Are The 10 Best Places To Retire In Colorado
How do you determine the best places to buy a home in Colorado for 2019?
We were in real estate for almost five years and have been working on this site for another three. Suffice is to say, we’ve put a lot of thought into what goes into finding a good place to buy a home.
So all that thinking has come to this moment where we get to spell out how we’d approach finding an up-and-coming place to live in Colorado. Put differently, the analysis will try to find places in Colorado with undervalued homes relative to pent up demand.
To do that we looked at the most recent American Community Survey Census data for 2013-2017 and compared it to the previous vintage (2012-2016). Specifically, we used the following criteria:
- Y-o-Y Change In Population (People want to live here)
- Y-o-Y Change In Median Home Prices (People are willing to pay for it)
- Home Prices Relative To The State Average (It’s still kinda cheap)
We want places that are growing, have seen home prices increase in recent years, and are still “cheap” for Colorado with the following caveats:
- Home prices had to be within 20% of the state average (Much lower than that and you get to some of the more dangerous places)
- Home prices increased in the last year, and
- Above 5,000 people (Bigger cities have more data points)
So of the 450 cities and towns in Colorado, only 76 places made it through our initial filters to even be considered.
We then ranked each place from 1 to 76 for the criteria mentioned above with 1 being the best for that criteria. We averaged the rankings to create a “best place to buy” index with the place having the lowest index being the best.
Turns out that Lochbuie is the best potential gem in the not-so-rough in the Centennial State.
Read on for more on these places.
Lochbuie was developed in the 1960s as the Spacious Living Mobile Home Park, and known as Space City until it was incorporated in 1974. The town was named Lochbuie after Lochbuie, Mull in Scotland.
The community was named for its location on Federal Boulevard and was officially incorporated in 1940.
The town was named for Brighton Beach, New York. Brighton was founded in the 1870s as a stage/railroad depot and farming community. The town was originally named Hughes Station. The town was incorporated in 1887. Among the notable scholars born there are Richard Ling, founding editor of Mobile Media & Communication, currently the Shaw Foundation Professor of Media Technology at Nanyang Technological University, and Max Pfeffer, Senior Associate Dean of the Cornell University College of Agriculture and Life Sciences
Initially named McKissick for the mine owner, Frederick was renamed when the daughters of Frederick A. Clark, a land owner, laid out the town site in 1907 and named it for their father. Incorporated in 1907, the Town of Frederick began as a coal mining town attracting immigrants from Italy, France, Greece, Turkey, several Slavic countries and Latin America. The Frederick Coal mine closed in 1928.
In 1859 after fighting in Bleeding Kansas, pro-slavery John D. “Colonel Jack” Henderson built a ranch, trading post, and hotel on Henderson Island in the South Platte River in Arapahoe County, Kansas Territory north of Denver, from which he sold meat and provisions to gold seekers on their way up the South Platte River Trail to the gold fields during the Pike’s Peak Gold Rush. Henderson Island was the first permanent settlement in the South Platte River Valley between Fort Saint Vrain in the Nebraska Territory and the Cherry Creek Diggings in the Kansas Territory. Henderson Island is today the site of the Adams County Regional Park and Fairgrounds.
The town was named for Jacob Firestone, a landowner. The town was incorporated in 1908.
Aurora originated in the 1880s as the town of Fletcher, taking its name from Denver businessman Donald Fletcher who saw it as a real estate opportunity. He and his partners staked out four square miles east of Denver, but the town – and Colorado – struggled mightily after the Silver Crash of 1893. At that point Fletcher skipped town, leaving the community with a huge water debt. Inhabitants decided to rename the town Aurora in 1907, after one of the subdivisions composing the town, and Aurora slowly began to grow in Denver’s shadow becoming the fastest-growing city in the United States during the late 1970s and early 1980s. Aurora is composed of hundreds of subdivisions thus carries the name of one of the original development plats from which it sprang.|Although Aurora has long been considered by many only as one of Denver’s larger suburbs, Aurora’s growing population in recent decades has led to efforts for co-equal recognition with its larger neighbor. Former mayor Dennis Champine once expressed the somewhat whimsical notion that eventually the area would be called the “Aurora/Denver Metropolitan Area”. Indeed, since the 2000 Census Aurora has surpassed Denver in land area, and much of Aurora is undeveloped, while Denver is more fully built-out. However, such efforts are somewhat hampered by the lack of a large, historically important central business district in the city. Aurora is largely suburban in character, as evidenced by the city’s modest collection of tall buildings.
The town was named after Horace Greeley, editor of the New-York Tribune, who came to Colorado in the 1859 Pike’s Peak Gold Rush. It was founded as the Union Colony in 1869, an experimental utopian society, but the name was later changed in honor of Greeley. Governor Benjamin Harrison Eaton declared Greeley an official city on April 6, 1886.|Greeley was built on farming and agriculture, but kept up with most modern technologies as they grew. Telephones were in town by 1883 with electric lights downtown by 1886. Automobiles were on the roads alongside horse drawn buggies by 1910. KFKA became one of the first radio stations to broadcast in the USA in 1922 and the Greeley Municipal Airport was built in 1928. Greeley housed two POW camps in 1943, during World War II. One was for German POWs and the other was for Italian POWs. A vote to allow the sale of alcohol passed by a mere 477 votes in 1969, thus ending temperance in the city.
The town was named for nearby gypsum deposits, and was incorporated in 1911.
There You Have It – The Best Places To Purchase A House In Colorado for 2019
There’s our analysis of the best places to buy a house in Colorado. And, to be clear, we aren’t necessarily saying these places are the best places to live, just that it looks like they might be in a couple of years based on the data.
In fact, every place in the following table meets our criteria, so even though it may not look super long, remember we started off with all 450 places in the state.
So if we’d could rent or buy in these cities, we’d definitely buy.
For more Colorado reading, check out:
Detailed List Of The Best Places To Buy A Home In Colorado
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