The Mountain West region of the United States, comprised of states like Colorado, Utah, Montana and Wyoming, has emerged as a popular real estate investment destination in recent years. With its abundant natural beauty, growing tech hubs and relative affordability compared to the coastal markets, the Mountain West presents several lucrative real estate investment opportunities for investors looking to capitalize on the region’s growth potential. In this article, we will explore the promising prospects of investing in Mountain West real estate.
The Mountain West isseeing strong population and economic growth
The Mountain West states have seen rapid population growth in recent years, significantly outpacing the national average. According to census data, states like Idaho, Utah, Arizona, Nevada and Colorado ranked among the top 10 fastest-growing states of the last decade. With more companies expanding into the region, and younger residents flocking in for the lifestyle and recreational appeal, the Mountain West appears poised for robust growth. The region’s diversified economy encompassing industries like tech, healthcare, energy and tourism has also strengthened its real estate investment viability.
Housing demand is rising amid limited housing supply
The housing markets across the Mountain West are characterized by growing demand amid constrained supply. Inventory levels in these markets are at historical lows, pushing prices up significantly. For instance, the median home price in Boise, Idaho increased nearly 30% year-over-year in January 2022. With more people moving into the region, especially to alpha cities like Denver and Salt Lake City, housing demand is likely to remain elevated. For real estate investors, the supply-demand imbalance indicates strong potential for cash flow growth and appreciation.
The tech boom is fueling growth in Mountain West metros
Many tech companies and startups, priced out of the coastal tech hubs, are relocating to Mountain West metros offering more affordable operating costs. This is turbocharging the real estate markets in cities like Denver, Boise, Phoenix and Salt Lake City. With high-paying tech jobs incoming, demand for both residential and commercial real estate is surging in these metros. Tech-oriented real estate developments are also on the rise, providing lucrative investment opportunities.
With its natural amenities, recreational appeal and business-friendly environment, the Mountain West presents attractive real estate prospects compared to the more saturated coastal markets. Investors can capitalize on the region’s population and job growth by investing in hot residential and commercial real estate markets while they are still relatively affordable. However, proper due diligence is required to identify the best submarkets and asset classes poised for outsized returns.