5 Reasons THIS Market Is an Ideal Place to Invest in 2019

by | BiggerPockets.com

Mark my words: buy in Thornton, Colorado. Invest in Thornton, Colorado.

I’ve been telling everyone this after already telling them to invest in Colorado Springs and also to invest in Chipotle stock circa Summer 2017. (You should have listened to me, Mom.)

And here’s a few reasons why I think it makes sense to invest in Thornton right now.

Why You Should Be Investing Here

1. The Tech Corridor.

Much to the chagrin of the natives, Colorado has been discovered and not just by the people but also by the tech companies. According to the Denver Post, 120 tech companies set up shop in Denver alone last year [1], and we know the ones with more money (ahem, Google, Amazon) have and/or are setting up in Boulder. [2]

That’s a lot of tech on U.S. Highway 36, and it goes to show that the metros near and between those two cities are going to benefit. Thornton happens to be 25 miles from Boulder and 10 miles from Denver.

Related: The 10 Best Places to Buy a Beach House in 2019

2. No one really likes Thornton (yet).

I have lots of clients who know they should move north, but none of them are excited to live in Thornton, Northglenn, or Commerce City. That is a (capital letters) MISTAKE.

3. My Orange Theory theory.

Previously called my Starbucks theory, I’ve now modified it to my Orange Theory theory, because paying for a $28 drop-in class is only appealing to a certain kind of demographic. And that same demographic has to exist to pay for glamour coffee, organic groceries, and high-end dog food. Thornton not only has Orange Theory,  but they also have Starbucks, Whole Foods, and Chuck + Don’s Pet Supplies.

My husband/business partner James once told me that Burger King does zero real estate research; they just go wherever McDonald’s goes. And by extension, I am saying be Burger King because Orange Theory is McDonald’s. You don’t need to like Thornton or think you like Thornton, because Orange Theory is telling you: we’ve done the research. It’s going to be really expensive soon.

car driving down interstate 36 in Colorado toward the city of Boulder with mountains in distance

Related: The Cities People Are Moving to the Fastest in the U.S.

4. Rents.

Again, the Denver Post has reported that rents have grown in Thornton by 72 percent this decade. [3] Single family home prices have also increased 42 percent in the past five years.

home price data for Colorado cities

5. All the other stuff.

And, yes, millennial popularity [4] and the decriminalization of mushrooms [5] are Denver perks—but they are also reasons to think the cost of real estate in Denver will continue to go up. People will need somewhere else to live and invest outside of Denver—somewhere they previously didn’t want to live but are now okay with. And if you need further proof this is happening, travel back in time five years and see if anyone wanted to live in Colorado Springs back then.

If you haven’t gleaned as much already, I think a Thornton, Colorado, investment property is a great idea. Investing there now could result in a highly profitable income property later.

Are you listening, Mom?!

References

[1] https://www.denverpost.com/2019/05/17/downtown-denver-economic-boom-continues/

[2] https://www.denverpost.com/2018/08/30/amazon-boulder-pearl-street-headquarters/

[3] https://www.denverpost.com/2019/03/26/metro-denver-apartment-rents-past-decade/

[4] https://www.denverpost.com/2019/05/04/denver-top-destination-millennials/

[5] https://www.denverpost.com/2019/05/08/denver-psychedelic-magic-mushroom/

Are you looking to buy or sell in the Denver metro area? Do you have questions for me?

Let’s talk in the comment section below.

 

About Author

Erin Spradlin

Erin Spradlin co-owns James Carlson Real Estate. She loves working with first-time homebuyers for their enthusiasm and excitement, and loves working with investors because she's a fellow spreadsheet nerd. She and her husband own three properties in metro Denver and are currently in the process of acquiring a duplex in Colorado Springs. You can find Erin's blogs here: https://www.biggerpockets.com/renewsblog/author/erinspradlin/ and her airbnb video series here: https://www.youtube.com/playlist?list=PLgSUZKLPRI9tK3Vd-qpH3Sk2Rh-_pIrNN.

8 Comments

  1. Mike McKinzie

    Actually, I think several areas around Denver should do well in the coming decade. Thornton, Brighton, Arvada, Westminster and others. And do not think the Springs doesn’t have more room to grow as well. I heard on the news today that the Denver areA expects to grow by 2,000,000 more people by 2045. Its more of an Appreciation play than it is an income play. 3-4% Cap rates are the norm here. But it should do well for long Terner.

    • Erin Spradlin

      My only push back on that would just be that Arvada is pretty in demand. It’s still priced very reasonably (you can get an awesome place for $425K or less), but it is definitely a place people want to be… especially now that the light rail is up and running.
      But otherwise, I totally agree. Denver metro has a lot of people and has changed dramatically in the past 10 years (rents have increased 80% over 8 years), but there’s still a ton of reasons to keep coming.

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