Wells: Real estate forecast 2025: Key trends to watch

As 2025 begins, Northern Colorado’s real estate market continues to demonstrate resilience and adaptability in the face of slower growth and affordability challenges. However, high desirability and favorable factors contribute to a positive outlook for the coming year. Let’s explore some key stories and trends shaping the region in 2025.

Weld County: Leading Northern Colorado’s growth

Weld County has firmly established itself as the driver of Northern Colorado’s growth. In 2025, it surpassed Larimer County in median household income, reaching $93,287 compared to Larimer’s $91,364. Weld County is also expected to overtake Larimer County in population, with Weld currently at 368,618 residents and Larimer at 373,965.

While Colorado’s population growth slowed to 0.95% in 2024, Weld County achieved a robust 2.55% increase, exceeding Larimer’s 0.86%. This momentum is projected to continue, with Weld projected to be a top-three growth county in Colorado over the next two decades.

The corridor between U.S. Highway 34 and Colorado Highway 56 along Interstate 25, extending into Greeley and Evans, has become a hub for national and regional developers. Residential, multi-family and commercial projects are being planned at an unprecedented scale. With available land, growth-oriented policies and access to water, Weld County is cementing its position as a leader in the region and the state.

Rising property insurance costs

Once a secondary consideration, property insurance has emerged as a significant affordability challenge. Over the past four years, Colorado’s average insurance premiums have risen by $818, making it the fourth-most expensive state for homeowners insurance.

This sharp increase is driven by Colorado’s ranking as second in the nation for hail-damage claims, along with wildfire and wind risks that have caused significant losses for insurance providers. According to a Rocky Mountain Insurance Association study, premiums for Colorado homeowners rose 57.9% between 2018 and 2023, compared to a national average increase of 33%.

These rising costs are adding pressure to housing affordability, becoming a crucial consideration for both buyers and current homeowners.

Equity-driven buyers anchor market stability

While affordability remains a concern, equity-rich homeowners and cash buyers continue to play a stabilizing role in the housing market. Nationwide, 38.8% of owner-occupied housing units are mortgage-free, and 30% of homes sold in the United States last year were all-cash transactions.

Northern Colorado reflects this trend. Research from The Group Inc. revealed record levels of all-cash transactions in 2024 for Larimer and Boulder counties.

These buyers are leveraging gains from a 15-year period during which Colorado led the nation in home price appreciation. While challenges remain, these equity-driven transactions contribute to stability and modest growth in the region.

Looking ahead

Weld County is poised to lead Northern Colorado’s growth in 2025, supported by robust development and an influx of new residents. Despite challenges such as rising property insurance costs, equity-driven buyers will continue to provide stability to the market.

Projections for 2025 show a 4% increase in homes sold and a 4% annual rise in median home prices. These trends highlight the region’s resilience and make 2025 another promising year for Northern Colorado real estate.

Brandon Wells is president of The Group Inc. He can be reached at bwells@thegroupinc.com or 970-430-6463.

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