Offering all-season recreation (hello, epic ski resorts), small-town charm and quick access to nearby Denver, it’s no wonder Boulder, Colorado attracts buyers seeking a balanced, fulfilling lifestyle in the Southwest. To get an of-the-moment understanding of the region’s fast-evolving real estate market, we spoke with The Agency Boulder’s Managing Partner Jay Hebb and Chairman Agent, Marybeth Emerson.
“Boulder is right in the heart of both summer and winter playgrounds which makes maintaining an active lifestyle a no-brainer,” says Marybeth. “World-class skiing, hiking, rock climbing, cycling—you name it, it’s all literally right outside your door here.”
Read on for a rundown of Boulder’s enduring appeal to buyers and investors, emerging market shifts, changes in buyer preferences and more.
What do you think is attracting buyers to Boulder right now?
Jay: Boulder is known for its high quality of life, outdoor recreational opportunities, strong economy, and vibrant cultural scene. The city is surrounded by protected open space, which is a significant draw for those seeking an active lifestyle. The city enjoys a stable and thriving economy which includes a bustling tech scene, robust biotech, the University of Colorado, several government agencies (including NCAR, NOAA & NIST), natural foods prominence and a startup community that serves a variety of industries. It has been said that Boulder has more venture capital per capita than anywhere in the country.
Marybeth: Buyers see Boulder as a place to escape from the congestion and hectic pace of larger cities like San Francisco, LA, and New York. They see Boulder as a nirvana that has it all; lifestyle, location, and opportunity. Boulder is right in the heart of both summer and winter playgrounds which makes maintaining an active lifestyle a no-brainer. World-class skiing, hiking, rock climbing, cycling—you name it, it’s all literally right outside your door here.
Boulder still has that small-town vibe where you’ll run into people you know down on Pearl Street. Yet we’re just 30 minutes from downtown Denver so we can easily get to big city activities like seeing the Nuggets play or taking in a Taylor Swift concert. On top of that, Boulder’s secret sauce is its unique style that blends individuality and a strong sense of community with tremendous opportunity for businesses as varied as Google and Microsoft to mom-and-pop pasta shops.
Can you provide an overview of the current real estate market in Boulder?
Jay: The current market is stable and active. Due to limited growth (supply) and strong appeal (demand), our conditions are amongst the most resilient in the world. The first quarter always proves to be more competitive as buyers re-enter the market sooner than the sellers. Thus far, 2024 has been on trend with even a few multiple-offer scenarios revealing themselves.
Marybeth: Boulder’s current real estate market is experiencing a period of healthy consolidation after years of appreciation and historically low inventory. From a Seller’s perspective, it’s a bit of an adjustment after having years where they could practically name their price and still get multiple offers. Right now, we have 24 active listings between $3M and $5M in Boulder. That’s about a 6-month supply based on 2023 sales at the same price point.
We’ll see even more homes hit the market in the next 6 weeks as our Spring selling season gets underway. While inventory is still tight in certain price points, Buyers have more to choose from these days and are much more discerning than they were post-pandemic. Sellers need to be realistic with pricing and set themselves up for success before listing by doing pre-inspections, home repairs, staging, etc. so that they stand out from the competition.
Stabilizing interest rates have brought some first-time home buyers back into the market after they sat on the sidelines and continued to rent in 2023. If rates remain where they are now or decrease slightly as expected, we’ll see an energized Spring market with average price appreciation.
How have Boulder’s ski attractions evolved in recent years?
Jay: Historically, Boulder has enjoyed easy access to several world-class ski resorts via a 90-minute to two-hour drive due West. It was common to load up in the morning, enjoy the blue skies and powdered slopes of Copper, Vail, Breckenridge, Keystone, A-Basin or Winter Peak and be home to Boulder in time for dinner. Due to Colorado’s popularity, that reality has unfortunately come to end. It is still doable (and done by many) but because of the traffic both breakfast and dinner will be enjoyed in the car on I-70. Alternatively, Eldora Mountain (steep and deep but smaller) can be accessed just outside of town and reached in 30 minutes or so. This affords a more comfortable day trip allowing local business folks to enjoy a morning session and be in the office by noon!
Marybeth: Eldora is our main ski attraction and it’s just 45 minutes from town. The resort has come into its own in recent years and is a happening place! The apres ski has been upsized with more music and great restaurant options. There’s even a meet-up group that combines the work and ski experience. The Ski and Snowboard Club has always been a cornerstone for locals and the program has become stronger and more vibrant. The club motto is that they’re “Building Champions in Sport and Life” by teaching life skills that endure outside of sports. The club also provides opportunities for scholarships for those with financial hardship so that it’s accessible for people from all economic backgrounds.
How has the pricing and affordability of real estate evolved in your market in recent years?
Jay: Due to increasing prices and higher cost of capital, affordability (as defined) is at an all-time low. While 2023 was relatively flat in terms of appreciation, we experienced double-digit growth in 2020, 2021 and 2022. Because the nature of our market is largely unleveraged, the cost of capital has created a headwind but one that has been largely overcome by the availability of cash.
Marybeth: Pricing and affordability continue to be one of the biggest challenges facing Boulder from a real estate perspective. With a median list price of around $1.2M in December 2023, many first-time home buyers have been pushed out of the city to outlying communities such as Louisville, Lafayette, Longmont, and Superior. Many of those first-time home buyers who want to remain in Boulder proper have opened up to condos and townhomes or chosen homes that need more renovation than they prefer.
On the luxury side: just a few years ago, it was unheard of to see a recorded home sale in the $10M range. In 2022, just one home sold for $10M in the city of Boulder. Last year, that number quadrupled to 4 homes, including a record-breaking sale at $13M at 1489 Sunset Blvd. (that was my sale, actually). The upper end is evolving and I expect to see that $13M record broken again this year.
Are there any notable shifts in buyer preferences or behavior that you’ve observed?
Marybeth: The most notable shift in buyer preferences in the past few years has been the distinct desire to purchase a property that is “move-in ready.” Buyers will pay a strong premium for homes that are dialed in with 2024 finishes. Gone are the days when buyers were clamoring for a great fixer-upper to build equity in. Today’s buyers, in all price points, are all about enjoying life today rather than spending two years renovating a home. The shift began subtly before Covid but really accelerated after the post-Covid market surge in 2021. The Covid experience turned our focus inward as we re-evaluated who and what matters in life and how we want to spend our time. This mindset transferred to buyers who place tremendous value on their time and want to spend it having fun with family and friends, hiking, skiing, and enjoying all that Boulder has to offer rather than dealing with contractors and dust.
What advice would you give to potential buyers or sellers in your market based on the current trends and activity?
Jay: Waiting for interest rates to come down further is akin to waiting for more competition and the resulting upward pressure on prices. If reconciled comprehensively, buying now at a slightly deflated value and higher interest rate will prove to outperform an inflated price environment and lower interest rates.
Marybeth: It’s no surprise that sellers often have a difficult time being objective when it comes to their own home. I can’t tell you how many times a Seller will tell me that their home is move-in ready and was fully renovated in 2010 or 2012. Unfortunately, those updates that were done in 2012 are over a decade old now! Those glass tiles and the “fifty shades of gray” color schemes are showing their age and need a little facelift!
Styles migrate slowly over the course of 10 years so the home will either need some refreshing prior to listing or the seller needs to be realistic and understand that their home will sell at a lower price compared to homes that have been redone in the last couple of years. That’s a hard pill to swallow for many sellers but it’s critical to be realistic up front as that pertains to pricing and days on the market.
My advice to buyers is to try to not get seduced by a property that has been redone cheaply and where corners have been cut. Make sure your agent knows how to tell the difference between quality workmanship and window dressing. I encourage my buyers to keep an open mind when a home does need some basic cosmetic updating rather than rejecting it altogether. Finding a home with great bones in a prime location may well be worth investing in new floors, paint, and a kitchen versus paying a large market premium for one that’s fully redone.
What are some interesting trends you’ve been seeing?
Marybeth: The trend toward more open floor plans and main-level living will continue in 2024. I’m seeing buyers pull away from the vertical townhome product that has been so rampant for the past 8 or nine years. As land became more valuable and Boulder experienced a shortage of affordable housing, the 3 story townhome started popping up all over town. Buyers in all age groups have started rejecting the layout for multiple reasons; younger buyers with small children are afraid their kiddos will topple down the stairs and older buyers simply don’t like all the stairs.
A seamless transition between interior living spaces and exterior living spaces continues to be huge. On the luxury side, a must-have is fully retractable doors that open to covered patios that can be converted to indoor or three-season spaces. As more people relocate to Boulder from areas like California and Texas, we’re also seeing a lot more pools, and I mean some really innovative designs, both in new construction and existing homes.
From a style point of view, we’re seeing a big shift toward what I would describe as a warmer, more “comfortable elegance”. The richness of wood as well as soft neutral and brown hues are where interiors are going in 2024. The ubiquitous modern farmhouse, stark white-on-white interiors, gray layered on top of gray, and floor plans that are too open are giving way to rich details like crown moldings and floor plans that provide owners some privacy and separation of spaces.
To learn more about buying or selling property in Boulder, Colorado, contact Jay Hebb at jay.hebb@theagencyre.com and Marybeth Emerson at marybeth.emerson@theagencyre.com. Browse available listings in Boulder here.
