The Edgewater, CO Market - 2017
Edgewater, Colorado is a very unique place. Most people don't see it's splendor right away because it has it's unseemly, it's conventional, and it's not exactly what Denver-ites would call "developed" yet in comparison to the Highlands, LoHi, Cherry Creek, and Washington Park. Even compared to the Sloan's Lake area of Denver, Edgewater would seem undeveloped.
Most people flock to Edgewater for the infamous Joyride Brewery, which has become the area's defining hotspot. Others come for U.S. Thai Café for it's write-ups in the Denver Post as the best Thai food in the greater metro area. Still, there's even more that most people aren't aware of and it's as equally as confusing as it is encouraging.
A 2 bed/ 1 bath home in Edgewater in 2011 sold for around $181,000 - $186,000. The 2 bed/1 bath home in Edgewater today would cost somewhere between $300,000 - $325,000. Zillow is now even saying $347,000 --- but I'm still in denial that things have progressed that quickly! That means that prices have nearly DOUBLED in the past 6 years. That's not a normal pattern for any area, unless you're an area teeming with desirable activities and lifestyle.
Here's what's going on:
Denver is too pricey
If you want a home, you're not going to get it in Denver. With home prices well into the mid-400's to high 500's for a 1,500 - 2,000 square foot home. That sends clients looking for homes out to the "suburbs" where they can still get homes in the 300's - 400's without a problem.
The Highlands are full
Denver has four main areas to call home. Downtown (LoDo, Downtown, Civic Park, Congress, Capitol Hill, Uptown, City Park, Cheeseman), the Highlands, and Cherry Creek. One is too pricey for most, the other too crowded, and the Highlands have become too full and prices are way up. Moving out to the suburbs offers more space and more growth potential at this point.
Millenials are beginning to want yards
Now that apartments have become too expensive downtown, and millennials are growing out of living in tight spaces for high rent, they are moving out and appreciating having a backyard and hosting parties. That type of space is not available in Denver proper, so in order to get the space you'll need to move out further and further from outside the "Denver inner circle".
Condo Parking is a pain
The worst part of buying a condo in Cheeseman, Congress, Capital Hill, and Downtown is the parking. A lot of these condo buildings were built in the 60's or 70's when not everyone owned a car. As a result, parking lots were not built and everyone parked on the street. Well, now the streets are crowded and you have signs restricting the times and places you can park. Houses are more appealing because you have a garage and private driveways to park your car each day.
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... so there you have it a few reasons that Edgewater is seeing such dramatic growth. In the end, prices are being driven up for Edgewater's potential, and not for what it currently is. There are about a 50-50 split of modern homes to outdated homes. Business zoning covers 8 blocks on 25th street, yet only three of those blocks are filled with businesses. Some of them are disheveled and need renovating too!
Much of the growth is in potential right now, and the true Edgewater will be realized in 5 - 10 years from now. Get in early, try to pay reasonable prices, and try to love the proximity to Sloan's Lake. Getting rid of the trailer park and putting in more business in the 20th/Depew Street lot is key for it's redevelopment. The only problem is time. Time to bring in these changes, and progress the neighborhood in a smart & pleasable way.
With that progress comes another great rise in real estate. For the foreseeable future, I will be watching Edgewater and predict it to become one of the most sought-after neighborhoods in Denver in the years to come!