Denver and Dallas are the dynamic duo for condo inflation nationally, according to a third-quarter update from Zillow.
Condos in metro Denver have appreciated 19.7 percent in value the past year, second only to a 20.1 percent gain in Dallas-Fort Worth out of 35 cities that Zillow tracks.
Denver, however, is a more expensive market, with an average condo value of $200,700 versus $137,300 in Dallas, as measured by Zillow’s Home Value Index.
Nationally, condo values rose 5.1 percent versus a 3.7 percent gain for single-family homes, which include townhomes.
Single-family homes are up 15.9 percent in value in metro Denver the past year. At $338,600, the average cost is out of reach for many first-time buyers.
That has made condos a more affordable alternative for renters looking to escape the squeeze of double-digit rent increases.
But outside of the luxury market, Colorado has seen minimal new condo construction since the downturn, which builders blame on the state’s construction defects law.
Supporters of the law argue efforts to weaken it will invite the return of sloppy construction practices seen last decade.
