Nation's 'hottest housing market' found in Colorado, says US News & World Report

U.S. News and World Report recently conducted a data analysis with the goal of determining which housing markets around the country are the 'hottest' based on the publication's 'housing market index,' which incorporates a wide range of data points into a final overall score. Multiple places in Colorado scored very well in terms of how hot the local market is.

The highest ranking metro area nationwide in terms of 'market hotness' was the Denver-Aurora-Lakewood metro area, with an overall score in December of 2023 of 74.8. Meanwhile, Fort Collins ranked 12th nationwide with a score of 69.2, Greeley ranked 15th nationwide with a score of 68.6, and Colorado Springs ranked 19th nationwide with a score of 67.8.

In terms of Denver's high score, this score was boosted by low local unemployment rates, few mortgage delinquencies, low rental vacancy rates for investors, and a positive ratio of building permits to job growth. The city's 'housing market index' score rose by 7.4 points year-over-year, and while 'supply' metrics were scored relatively low, 'financial' and 'demand' metrics scored high.

The median sales price by December 2023 in the Denver metro area was reported to be $550,000, above a national median of $404,000. Denver's median sales price dropped in recent months from a high of $595,000 in June of 2023.

Meanwhile, rent in Denver continued to climb, despite higher vacancy rates. Data from Zillow indicated that it rose 3.1 percent year-over-year to $1,992, just above the national median of $1,957.

Elsewhere in Colorado, Fort Collins ranked 9th on the U.S News and World Report 'Markets to Watch' ranking, with the local 'housing market index' score increasing by 2.7 points between June and December, indicating that this market has heated up in recent months.

Greeley, Denver, and Fort Collins metros all ranked among the 'most resilient markets' in the nation – 1st, 8th, and 10th, respectively. Greeley's leading resiliency was captured in a year-over-year 'home market index' score increase of 13.2 percent.

When it came to demand-related metrics, Denver ranked 2nd nationwide, Colorado Springs ranked 7th, and Greeley ranked 8th.

Find the full results of the U.S. News and World Report data analysis here.