DENVER — A report from real estate company Zillow says home values are rising at the fastest rate in 12 years.
Nationwide, home values increased 8.7 percent during the past year to a median value of $215,600. In the Denver area, home values rose 8.8 percent to a median value of $399,200.
Median rent in the Denver metro increased to $2,058 per month, a rise of 3 percent.
Denver’s many tower cranes will likely be here to stay as developers attempt to keep pace with demand; Zillow said inventory is down 12.7 percent.
However, Denver’s home values rose much slower than those of some other cities. In San Jose, California, home values have spiked 26 percent since April 2017. The average monthly rent there is a sky-high $3,529.
“Home values are rising faster than we’ve seen in a very long time: The spring home shopping season has been a perfect storm of strong demand and tight supply,” said Zillow Senior Economist Aaron Terrazas. “Sluggish new construction has exacerbated the supply situation and homes that are hitting the market are moving very quickly once they do.”
Terrazas said tax cuts, rising wages and more millennials buying homes are other reasons for rising values.