Can We Still Appreciate Appreciation?

From The New York Times to cable news, real estate appreciation has been the talk of journalists lately. Specifically, the topic of discussion is whether or not homeowners will ever experience property appreciation the way most parts of our country did in the latter half of the 20th century.

The obvious answer to this is, time will tell. In my opinion, property appreciation will be extremely localized. Maybe I just like to look at the glass half full, but living and working in this area of Colorado—Boulder/Broomfield/Denver—we see firsthand that growth is a real occurrence and not just a plan.

According to the City of Boulder, the originally projected population and employment levels for Boulder Valley in 2020 have already been reached. And Kiplinger’s Personal Finance magazine last month ranked Boulder as number four on the list of “Best Cities for the Next Decade.” Coincidentally, Boulder’s director of community planning and sustainability was quoted in the article regarding being challenged with managing growth without seeing home prices get too high.

So before you decide to sign another lease, think long and hard about your plans for the future and whether you would rather rent year after year or possibly one day relish in your gold mine of a home. I think you’ll appreciate it.