Gentrifying Neighborhoods in Denver in 2023

[Stephen Pearson]

I'm a real estate agent in Sonoma County (San Francisco North Bay) and my girlfriend lives in Denver. I've visited many times the past couple years and absolutely love it. She lives in Cherry Creek but there are so many other cool neighborhoods as well (Highlands, Congress Park, Cap Hill, 5 Points, etc.). My question is, what neighborhoods are, or, are on the verge of gentrifying? Which ones have duplexes (both sides are the same property), triplexes, quadplexes, OR commercial buildings with residential above? I'd love to pick up an investment property this year, and why not Denver?! I'd be interested in the price point under $1m, would cash flow, but also something that will appreciate when the neighborhood shifts.

Thanks in advance!

[Dean V.]

Hey Stephen!  I've lived and have been investing in Denver for a few years now, so I definitely don't have the most time of anyone out here, but I've been loving it and have the same mindset as you - it's been great exploring and learning the area, and I'm a big fan of neighborhoods I feel have a lot of upside in the near future.

Ultimately I'd say it depends how speculative you want to get!  Higher risk/higher reward as they say haha

Personally, my properties out here are in Englewood, and while there's definitely a spectrum in Englewood of more/less gentrified, I'd say that from the sound of what you're looking for, most of Englewood may already be too gentrified for your tastes (especially on the Cherry Hills Village border).  Heading slightly west though, I have high hopes for Sheridan (most of the homes here actually carry an Englewood mailing address and it's very similar to Englewood although I'd say less gentrified currently).  There seems to be a good amount of development over there, including small multifamily (their zoning seems to be a little more favorable for this than most of Englewood, although take a look at Englewood's zoning map since there are definitely areas where they do allow small multifamily properties).

Lots of Lakewood falls into the same type of boat, some neighborhoods I've explored have been Harvey Park, Ruby Hill, and Mar Lee although there are other good ones around there as well.

A lot of my friends and fellow investors/househackers really like stuff further north in Sloan's Lake (already a little too developed for me at this point, although still deals to be found if you're willing to really put the work in), Wheat Ridge, Edgewater, and Arvada (Old Town Arvada is actually a really awesome spot to check out!).  These areas seem to be less restrictive for househacking/multifamily/investing, but I'm not as familiar with them myself to be honest.

I've also been hearing that going east on Colfax from Denver "will be getting nicer soon!", but check's still in the mail for the most part as far as I can tell.  I am optimistic on the area near Anschutz Medical Campus, especially with the development on the Fitzsimons Innovation Campus, but again that may be a longer-term and less certain play.

Let me know next time you're in town, I'd love to grab a beer and chat!

Best of luck to you, and don't hesitate to give me a shout if there's anything I could help with - I invest out-of-state as well so I know how that goes!

Cheers,
Dean