DENVER — If you think you've been seeing more duplexes pop up around the Denver metro, you're right.
The Denver metro is one of the top areas in the country for building multifamily housing units, according to a report from Construction Coverage. The metro ranks 14th in that category in the U.S.
While multifamily homes can be a budget-friendly option for many buyers, real estate agents say buyers should consider several factors that could impact the long-term value of the home.
"Your appreciation definitely is going to be a little bit slower in a multifamily than it would be for a single family," said real estate agent Crystalle Guss.
But there is good news.
"Because of the necessity for more multifamily properties in Colorado, I feel like those properties are going to be more valuable and more precious to have in the real estate market, especially for first-time home buyers," Guss said.
According to the Denver Metro Association of Realtors, environmentally-friendly features, new flooring and landscaping can enhance a multifamily housing unit's resale value.
There are also selling points outside of the home.
"School systems are going to be important... parks, schools, lakes," said Guss.
Purchasing a multifamily unit in an established neighborhood can also boost resale value.
Kelley Hux chose to buy a 3-bedroom unit in Southmoor Park. She screened several multifamily housing units, and found many homeowners associations had rules that would prohibit her from renting out the unit in the future.
Hux made sure to choose a condo she could later use as an investment.
"I can rent it out and continue to make income off of this property," she said.
While Colorado does outpace the country in the number of multifamily housing units that are being built, the option is on the rise across the country. According to Construction Coverage, 41.4% of new housing units authorized in the U.S. in 2022 were multifamily, marking the highest level since 1985.