As the capital and most populous city in Colorado, Denver offers many personal investment opportunities for residents and newcomers alike. With a diverse economy and growing population, the Mile High City provides options in real estate, small business, and more. This article explores the top investment prospects in Denver, key factors to research, and strategies to maximize returns.
Denver’s strong job market creates demand for rental properties
One major investment opportunity in Denver is residential real estate for rentals. The city has experienced rapid job growth in recent years, especially in tech and energy. This incoming workforce needs places to live, so demand for rentals is high. Good neighborhoods to target include downtown LoDo, Capitol Hill, and Cherry Creek. When researching potential rental properties, look at employment data, transportation access, and lifestyle amenities to determine demand.
Flipping houses can produce big profits in gentrifying neighborhoods
With Denver’s hot housing market, fixing up and reselling homes for profit can yield big returns. Focus on more affordable neighborhoods seeing early signs of gentrification, like Five Points, Whittier, and Montbello. Look for outdated but structurally sound houses, make renovations to match current homebuyer tastes, then list at a sizable markup. However, rising interest rates could slow the market so don’t overleverage.
Marijuana industry still offers opportunities despite saturation
Colorado’s cannabis industry continues expanding since legalization, providing investment prospects. Retail marijuana shops face increasing competition, so focus on ancillary products like edibles, concentrates, and topicals. Industrial hemp is another option, supplying CBD products and other uses. However, high startup costs and regulatory compliance pose challenges.
Technology and renewable energy have local growth potential
While not as established locally as sectors like real estate and cannabis, Denver offers investment potential in technology and renewable energy. The city has a fledgling tech hub with a skilled workforce. Promising tech startups to invest in include cybersecurity, cloud computing, and geospatial firms. For renewable energy, Colorado’s abundant sun and wind make solar and wind projects worth exploring.
Food and beverage, fitness are solid retail and service bets
Retail and service businesses also provide Denver investment options, especially as the city gains more millennials and Gen Z residents. Food and beverage concepts like coffee shops, breweries, and farm-to-table eateries tend to thrive here. Boutique fitness studios are another opportunity, from yoga and barre to HIIT and boxing gyms. Ensure the location and offerings fill an unmet neighborhood need before investing.
With its diversified economy and demographic growth, Denver offers many avenues for personal investors to earn attractive returns. Real estate, cannabis, technology, and retail/services represent some of the city’s ripest prospects. Conducting thorough market research and acting opportunistically can lead to success.