The COVID-19 pandemic drove a surge of interest in mountain homes as Americans fled cities for quieter, less populated areas. Colorado is a case in point. A study by the Northwest Colorado Council of Governments acknowledged a “sharp rise in home prices and high demand for housing” that area real estate agents predicted would continue.
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While that study looked only at resort and high-amenity mountain locations in Colorado, mountain towns and cities across the U.S. continue to experience high population growth. GOBankingRates reached out to real estate agents and investors in some of those growing areas to get their opinions on the best mountain towns to buy property in the next five years.
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Bend, Oregon
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Average home price: $728,226
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12-month change: 1.2%
Bend is a great mountain town for residents and investors alike, according to Realtor Suzanne Moore, founder and owner of Central Oregon Investor Network.
“It has historically provided solid appreciation and some cash flow opportunities. People are moving here, vacationing here and generally attracted to the area for so many reasons, so there’s excellent rental demand for a variety of investment strategies,” she said.
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Blue Ridge, Georgia
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Average home price: $491,808
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12-month change: 1%
Charissa Bright, founder and owner of Bright Buys Houses, located in Watkinsville, Georgia, called Blue Ridge a “growing gem” whose charm, rising property values and year-round tourism make it an ideal choice for buyers in the next five years.
Noting that Blue Ridge is experiencing steady population growth, Bright said access to jobs, quality healthcare, schools and extensive outdoor recreation opportunities add to the town’s appeal.
“Home sales are booming, and they are driven by demand for primary residences and investment properties,” Bright said. “It’s a rental hot spot, too, with tourists keeping short-term rentals full year-round and retirees or families seeking long-term options.”
Fort Collins, Colorado
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Average home price: $554,755
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12-month change: 0.9%
The secret is getting out that Fort Collins is a very desirable place to live, according to Fred Porter, broker and owner of Porter Real Estate.
Located in the foothills of the Rocky Mountains, 60 miles north of Denver, Fort Collins is a family-friendly city with great schools, a robust job market, a thriving arts community and outstanding outdoor recreation.
It’s also undergoing a major growth spurt that could see the town’s population of 170,000 double in the next 25 years, Porter said. It’s no wonder, then, that average home prices have steadily increased by 22%, to $554,755, over the past four years.
“The City of Fort Collins projects a demand of 30,220 housing units by 2040,” Porter noted. “Based on projected construction of new homes, there will be a deficit of 2,043 units in 2040.”
Fort Collins also has a strong rental market, thanks to Colorado State University’s location within the city.
“The average rent for a three-bedroom apartment is $2,200 per month, with single-family houses renting for more,” Porter said.
While Fort Collins also has a thriving short-term rental market, Porter advised that you do your due diligence.
“The city has put restrictions in place, so if you’re considering purchasing a property for short-term rentals, you’ll want to work with a local Realtor who knows the market,” he said.
Seattle
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Average home price: $848,982
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12-month change: 3.1%
Home to 17 Fortune 500 companies and located along the Puget Sound, surrounded by the Cascades, Olympics and Mount Rainier, Seattle is a mountain town unlike most, according to Chris Reis, real estate broker with PNW Residences/Compass Real Estate in Seattle.
Bolstered by its strong economy, educated workforce and high-paying jobs, the real estate market has experienced significant growth over the past decade, Reis said.
“The real estate market consistently finds itself in a shortfall between demand and supply, majorly amplified by the fact that adding additional housing is challenging given the topography of the region,” Reis said.
And the growth is expected to continue. “With temperate weather and abundant natural resources, it is understandable why some population projections see the Puget Sound region adding 1 million additional residents by 2040,” Reis explained. “Already faced with housing shortages, this high-earning population growth could offer promising returns to homeowners and investors alike.”
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This article originally appeared on GOBankingRates.com: Real Estate Agents: 4 Best US Mountain Towns To Buy Property in the Next 5 Years