From “Stay Safe Colorado See You Soon!” to “We’re Back” the local cinema, Mayan Theatre, which concentrates on independent movies & foreign cinema, has finally reopened.
With the local state leadership in Colorado, our state has continued to excel in handling the pandemic and terrors which have affected many American cities. As many coastal cities are being abandoned in droves, and values decrease, Denver has maintained growth and stability.
Experts Anticipate an Incoming Strong Seller’s Market in Denver, CO
SOURCE: DMAR JULY 2020 REPORT
Denver Metro Association of Realtors (DMAR), released in their July report which systematically covers the activities and transactions of real estate activity in Denver’s surrounding metro area. As shown in their July report, DMAR recognized the increase in RE activity. They state and show multiple increases in closings and showings; DMAR recorded multiple record-breaking numbers. With the healthy activity but fewer new listings, Denver is en route to a competitive seller’s market. "Remember how fast toilet paper and personal protective equipment (PPE) was selling when the coronavirus first hit the country a few months ago?” Says Jill Shaffer, Chair of the DMAR Market Trends Committee, “Apparently everyone stocked up on those necessary items because in June, they turned to buying houses with the same level of frenzy.”
As Denver’s housing market progressives, other major city outlets are lessening and dropping in property value. As reported, Silicon Valley predicts future trouble. As they incorporate the new systems and ways of digital growth, Silicon Valley has been on the forefront of developing systems to help individuals work from home. However, as some experts predict, this is resulting in less individuals staying in the bay area.
Along with Silicon Valley, other large tech-based communities are not reporting any good or progressive news. The only large technical municipality that shows good numbers is Denver’s local DTC. Experts predict Denver to be one of the quickest to recover from COVID-19 loses.
In Denver, Short Term Rentals Continue to Decrease
City of Denver reported a substantial loss in short term rental taxes. DMAR’s August report also includes how STR taxes have dropped by 55% from 2019. Denver local hotels also contribute to this incoming tax; however, they substantially contribute a lot less than what STR hosts bring in for the city. The loss in STR taxes comes from lack of tourism and visitors to Denver. It was also found that in Denver, the number of Lodger tax accounts was substantially larger than the number of active licenses.
The global pandemic and quarantine lessened tourists and guests in Denver; however, it is not the only variable. Because of less action, the Department of Excise and Licensing has brought more attention to the STR license process. With Host Compliance, they managed to find over 1200 inactive license users in the past few years, which is just the start of the process. This year alone, the Department of Excise and Licensing has closed the process to over 200 license renewals, denied 58 new licenses, and still looking into nearly 400 affidavits. (These numbers do not include the affidavits the department has denied). The blockade of new licenses and affidavits could stem from the new wording in Denver’s STR license regulations. As the department hired more manpower to carefully inspect active licenses, more Airbnb/Short term rentals will be closed/fined for not following the exact verbiage of the new ordinances.
As the City enforces and regulates short term rentals and their licensees more, startups and investors also have their own problems amidst COVID-19. At the beginning of the government mandates and company responses to the pandemic, Airbnb allowed all guests the ability to cancel their trips with 100% refund guaranteed. Property managers and startups did not prepare for the excruciating lack of income through March, April, May, etc… Some hospitality startups have filed for bankruptcies, others sold their rentals to new companies.
So what exactly does this all mean? Is it good? Bad? Honestly, it’s a scary mixture of both (just like everything going on in the world). As experts predict the recovery of Denver’s housing market – investors, capitalists, and corporations will begin to snatch up as many lots and assets available. With the new enforcement and regulations surrounding STR, many of the capitalists buying homes will not be able to create short term rental homes (or shouldn’t be able to).
An Attainable Way for the Highest Return on Value for Denver Homes
As planned and developed years ago, Denver Development Group has been incorporating the AirBnb Suite (ADU) to a good portion of the upcoming duplexes. Originally named the Mother-in-Law suite, this incorporation allows any individual buyer to maximize returns on properties. As shown in our newest Villa, this suite has a private entrance, private appliances, private living space – a full entire private entity/suite. Although it is a fully separate entity, by code it is legal to gain an STR license.
