T
he Northern Colorado landscape is undergoing a significant transformation, with the entire market expected to shift east over the next decade. According to Brandon Wells, president and CEO of The Group Inc. Real Estate, this shift will bring more people, housing, and jobs to the area.
Wells presented his 2025 Real Estate Forecast at an event in Loveland, citing the Boulder Benchmark as a reliable indicator of market trends. This benchmark is a single home built in three different markets - Boulder, Fort Collins, and Greeley - which has proven to be an effective gauge of market performance.
The formula for tracking sales prices is simple: compare the price of this 2,000-square-foot house in each market. Last year's sales prices were $377,500 in Greeley, $570,000 in Fort Collins, and $983,425 in Boulder. If you want to know what will happen in Fort Collins in 10 years, look at Boulder's current price; if you want to know what will happen in Greeley, which typically lags behind by eight years, see its current sales price.
Housing prices are increasing steadily across all three markets, with average annual appreciation rates of 5% in Greeley and 5.7% in the Loveland/Fort Collins market. However, Greeley's median residential single-family housing price grew 6.93% to $429,209 in 2024, outpacing Fort Collins' growth of 0.63% to $624,000.
Wells predicts that these markets will remain stable in 2025. Meanwhile, The Group is focusing on the east side of Weld County, where there's more land and water available for residential development. This area is expected to see significant growth, with the population projected to surpass Larimer County within two years.
The Group is opening a new office in west Greeley to cater to this growing demand. Wells notes that buyers today are different, with millennials making up the largest portion of homebuyers and first-time homebuyers now averaging 38 years old.
However, there are challenges on the horizon, including rising insurance premiums due to natural disasters. Insurance providers are charging higher rates to offset claims, creating difficulties in finding affordable coverage. Wells warns that non-renewals and carrier exits could become a major issue for homeowners.
Finally, The Group is keeping an eye on accessory dwelling units, which all communities must allow by July 1. Wells is interested in seeing how this will impact rental rates and property values, given the high cost of construction.
