Which Denver neighborhood produces the most home sales? It’s a common enough question and one that has a consistent, if superficial, answer: Stapleton. Given that it’s Denver’s largest neighborhood, that’s not too surprising. But I’ve been wondering if there’s more to the story.
This week, my goal was to find a way to compare apples to apples, to understand how well Denver neighborhoods sell proportionately. Without the size bias. So I decided to level the playing field by calculating how many homes sell per acre. Measuring by acre instead of by neighborhood should produce a more accurate comparison of sales activity.
Have you ever seen a Denver “homes-per-acre” stat? Me neither. But as you know, I’m a big fan of translating real estate data into something practical. And I think the stats you see below open an intriguing new window into the activity of each neighborhood.
The chart below lists the number of sales from highest to lowest, per acre. The highest sale-per-acre (SPA) neighborhoods indicate where the most buyers are buying—but of course, it’s also where the most sellers are selling. For everyone moving into the neighborhood (or within the neighborhood), there is someone else selling and moving out (or within the neighborhood). And alternatively, in the lowest SPA neighborhoods, people aren’t buying as often—but people aren’t selling as often either.
So what does it all mean?
Does SPA tell us more about the neighborhood’s demographics than how sellable it is? In other words, are the neighborhoods with the highest activity the same areas where people are in a life transition and moving a lot? And since we’re basing this on acres, how does a neighborhood’s average lot size affect the numbers?
More questions than answers this week, but I thought it was a good starting point for debate. Let me know what you think.
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