Real estate investing in Colorado is on the upswing. With stabilizing mortgage rates, home sales are picking up—good news for real estate investors.
To help you get in on the Centennial State’s active real estate market, we’ve summarized current market trends, the best cities, and investing strategies to consider.
At ABL, we’re dedicated to supporting real estate investors all across Colorado with our flexible loan programs. Contact us today to learn more!
Colorado Housing Market Snapshot
Real estate market metrics are up across the board in Colorado.
In December 2024 (the latest available data), active home listings reached 19,459, an 8.9% jump from the same time last year. This has pushed the state’s home inventory level from a 2.5 months supply last year to a 2.7 months supply (4-6 months is considered healthy). As an investor, this means competition among buyers is down and there’s more potential for a great ROI if you buy at a lower price.
Naturally, this encourages more home sales. In December 2024, they reached 6,243, up 14.4% from last year, while pending listings (homes under contract) hit 5,261, up 10.6% from last year.
Meanwhile, persistent housing demand has kept home prices high and growing. In December 2024, the median home sales price was $543,100, up 5.5% from last year and 29.6% from the national median in Q4 2024.
Best Cities in Colorado for Real Estate Investors
Now that you have a broad overview of Colorado’s housing market as a whole, let’s dive into the top markets within the state:
Denver
Denver is the capital and most populous city of Colorado with over 716,000 residents and a median home listing price of $550,000.
Littleton
Littleton is a suburb of Denver with just over 44,000 residents and a relatively high median home listing price of $632,200.
Colorado Springs
Colorado Springs was recently named the nation’s top housing market for 2025. It has a population of over 488,000 and a median home listing price of $458,000.
Westminster
Westminster is another suburb of Denver with a population of over 114,000 and a median home listing price of $499,000.
Loveland
Located about 50 miles north of Denver, Loveland is a small city with over 79,000 residents and a median home listing price of $545,000.
Aurora
Aurora is the largest suburb of Denver with a population of about 395,000 and a median home listing price of $472,000.
Arvada
Arvada lies north-west of Denver with a population of over 121,000 and a median home listing price of $625,000.
Golden
Located at the foothills of the Rocky Mountains, Golden is an upscale suburb of Denver with about 20,000 residents and a high median home listing price of $912,500.
Not sure which Colorado market is right for you? Contact our Colorado team to learn more about current market trends and where you can get the best ROI.
Top Real Estate Investing Strategies for Colorado
Before you invest in Colorado real estate, settle on an investing strategy. Fortunately, there are many to choose from:
Fix and Flip
Buy, renovate, sell—That’s the time-tested formula for generating a quick profit from real estate. However, there are many moving parts involved.
To be successful at flipping houses in Colorado look for a distressed property you can buy at a discount, then repair and upgrade it to increase its value. From there, you can resell for a profit, capturing the equity you created and any market appreciation over time.
To secure the funding you need, get an ABL fix-and-flip loan. It will help you beat your competition to the closing table and ensure the entire flipping process runs smoothly.
Buy-and-Hold
If you prefer long-term real estate investments, consider the buy-and-hold strategy. It involves buying a property that requires little, if any, repair and renting it out to long-term tenants. Of course, you’ll still need to market the property, screen tenants, and handle day-to-day property management tasks.
Also, while many lenders require you to jump through hoops to get a rental loan, ABL’s DSCR loans focus on the property’s ability to generate enough cash flow to cover your monthly payment. Our average DSCR requirement is 1.2 (though we also have lower DSCR programs).
BRRRR Method
Can’t decide between the fix-and-flip and buy-and-hold strategies? Why not a blend of both?
The BRRRR method is an advanced investing strategy that gets its name from the acronym for “buy, renovate, rent, refinancing, repeat.” It involves buying a distressed property to fix up, renting it out to tenants, getting a cash-out refinance, and using the proceeds to buy your next rehab and repeat the process. It’s a great way to build your rental portfolio quickly.
ABL can help you buy a BRRRR property with our fix-and-flip loan, and then when you’re ready to refinance, we can help you with our cash-out refinance loan as well.
New Construction
If you have building experience, new construction is also a viable investing strategy. In fact, Colorado ranks ninth out of all fifty states for building the most homes, suggesting there’s lots of potential for new builds.
Of course, building homes requires a lot of upfront capital for the land and construction. Unless you have deep pockets and want to risk a large amount of cash, consider getting a new construction loan from ABL. We offer loans with LTCs of up to 90%. Plus, there are no prepayment penalties and as few as zero points!
Partner with ABL’s Colorado Team
No matter where or how you choose to invest in Colorado real estate, one thing is certain: You need a reliable team to be successful. It can include real estate agents, attorneys, contractors, title agents, insurance providers, private lenders, etc.
At ABL, our local Colorado team has helped countless investors just like you turn their real estate investing vision into reality. Start working with us today by pre-qualifying for a loan!
Note on sources:
- Colorado real estate market statistics taken from the Colorado Association of Realtors (unless otherwise cited).
- Top Colorado cities selection and median home listing prices taken from Realtor.com.
- Population data taken from the U.S. Census Bureau.
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