For over a decade, the city of Durango, Colorado has been earning a place on various Top 10 lists. Publications like Outside magazine and High Country News consistently rank the mountain town among the best places to live. Its economy and real estate market have followed its increasing reputation. If you’d like to know if you’re in position to make the most of a property purchase, check out the sister article “Is Now the Time to Buy Durango Real Estate?” for everything you need to know. Between the two, you should find what you’re looking for in terms of advice and guidance in the Durango real estate market. If you’d rather talk to a real estate professional, get in touch!
Pros of Buying Durango Real Estate
1. The real estate market is set for growth. Fortunately, this rings true at both the city and state levels. Colorado’s scenery ensures that people will want to live and vacation in the area for a long time. The southwestern corner of the state is highly scenic. Colorado also boasts a strong economy, sustained by a young workforce. Millennials tend to move around a lot, but Colorado has a special holding power that causes many to stay long term. Do not expect to see too many bargains, but trust that estimates show median house prices growing steadily.
2. The real estate market shows impressive resilience. Colorado somewhat evaded the real estate bust of 2008. New building started slowing back in 2003, so the market is relatively more stable. The foreclosure rate is low. In addition, high demand and low supply rule the market. That cannot be argued. But once you’re in, you’re in. The market has demonstrated a knack for staying afloat in tough times.
3. The city is focusing on increased residential density. In other words, they are making room for prospective new residents like yourself. Especially if you are open to any type of residential property, there should be more options available in the coming years. Expect competition, however. Both the city and the state attract large numbers of prospective residents.
4. Mortgage rates tend to be very low. That said, real estate professionals warn that these rates are not guaranteed. Trulia has graphed the statistical trends nicely.
5. The physical environment is exceptional and healthy. While this adds to the everyday quality of life for those who live there, it benefits all property owners. Tourism for the Mesa Verda is a major draw and keeps the economy healthy. Additionally, the city of Durango actively fosters the boon of tourism.
6. The cultural setting is robust. Durango has an appreciation for natural beauty, health & fitness, and fine things like chocolate shops and luxury ranches. Entertainment and cultural options increase alongside the growing number of seasonal visitors. Competitive cycling has been a component of Durango life for about fifty years.
Cons of Buying Durango Real Estate
1. Properties are in short supply. While the city government moves to increase residential density, this problem has been perennial over the last decade. If all goes well, there should be an increase in the number of new properties and vacation rentals. However, major issues such as lack of space and zoning complications threaten to keep the supply low. As the White House recently warned, “The accumulation of [zoning] barriers…has reduced the ability of many housing markets to respond to growing demand.”
2. The housing market is relatively expensive. The median housing price for in-town Durango homes has hovered around $425,000 for the last several years. That figure is higher than the regional, state, and national median housing prices. People who choose to move into Durango tend to value the combination of affluence and natural scenery. For similar yet more affordable alternatives, look to neighboring cities of Silverton, Cortez, and Pagosa Springs.
3. There are regular changes in available property types. At certain points, there are new batches of luxury ranches on the market. At other times, freshly listed condominiums are available. The landscape is constantly shifting, which is an upshot from the limited supply of properties. If you intend to make a wise purchase, you will either need to follow the market closely or have excellent luck. Alternatively, you can hire an experienced real estate agent!
4. Housing costs outstrip the job market and median wages. This trend has existed for several years, and it is a common complaint of residents and media outlets. If you want to move to Durango, know that this trend will influence your success. That is especially true if you expect to be an entrepreneur or simply find work once you arrive.
The Right Type of Property For You
There are three primary types of property ownership: townhouses, condominiums, and single-family homes. As mentioned, the current market is in short supply of all property types, but especially townhouses and condos. However, the city government hopes to increase residential density in town.
Condominium ownership is best suited for retirees, young professionals, young couples, frequent travelers, and investors. In the case of Durango, that applies most directly to retirees, young couples, and investors.
Single-family ownership is best for families and those willing and able to maintain a property. For that reason, these families will probably spend most of their time there. People who go down this path will choose between a rural or in-town property.
Townhouses, though few and far between, provide an excellent middle ground. They balance the amount of maintenance and costs involved in property ownership. For more comprehensive information on deciding whether to buy a house, townhouse, or condo, check out this Investopedia article.
We wish you the best of luck in your decision to buy Durango real estate property!