A sleepy mountain town in Colorado could soon be a serious rival to the more glamorous Aspen – and property is significantly cheaper.
Snowmass Village, located just under nine miles from its famous neighbor in western Colorado, has been home to the Snowmass Ski Area since 1967.
But it is currently undergoing a dramatic transformation thanks to a massive $1 billion development project, Wall Street Journal reported.
The phased Snowmass Base Village development, spearheaded by developers East West Partners, Aspen Skiing Company, and KSL Capital Partners, is boosting the area with new upscale restaurants, shopping venues, hotels and residences.
With property so pricey in Aspen, some buyers may now be tempted to invest in Snowmass. Previously real estate in Aspen was around 35 percent more expensive, but prices are now about 50 percent higher, according to the outlet.
Snowmass Village, a ski town overshadowed by its famous neighbor Aspen, is undergoing a major transformation
A $1 billion development project, Snowmass Base Village, is bringing new luxury shops, restaurants, hotels and residences to the area
Since acquiring Base Village in 2016, the developers have sold more than $700 million in residential real estate across seven projects, with a final residential complex currently under construction that is projected to generate an additional $500 million in sales, the Wall Street Journal reported.
‘Most homes in Snowmass are older,’ Will Burggraf, a real estate agent with Aspen Snowmass Sotheby’s International Realty, told the outlet.
‘There wasn’t the high-end residential product to attract the high-end clientele. But if you build it, they will come,’ he added.
According to Realtor.com, key metrics reveal how Snowmass has evolved into a hot real estate market.
Prices, while high, are going down, according to Realtor.com. In 2022, the median listing price for a home was $6.7 million. In 2023, that dipped to $6.3 million, and as of now, it currently hovers around $6.25 million.
The town’s population of approximately 3,000 year-round residents is primarily supplemented by second-home owners, with a smaller number of buyers purchasing properties for full-time residency or investment purposes.
Snowmass attracts buyers from across the U.S., as well as international interest.
Among the most sought-after properties are the new residences in Snowmass Base Village. Currently, nearly 60 condo units are pending sale, with prices ranging from $3 million to $12 million, according to the Wall Street Journal.
Pictured: Aspen, where prices are 50 percent higher than that of Snowmass
Additionally, there are both on-mountain and off-mountain single-family homes available.
On-mountain homes boast convenient ski access and modern construction, though many properties lose sunlight earlier in the day due to being north-facing.
Off-mountain neighborhoods offer options with longer sun exposure, though they lack the ski-in/ski-out appeal.
As the market for high-end real estate grows, Snowmass has also faced challenges when it comes to home insurance.
Tim Morgan, principal at Aspen-based Roaring Fork Insurance, noted that securing home insurance has become more difficult in recent months.
‘Wildfire is the area’s biggest concern,’ he said, emphasizing that properties located within a five-minute response time from a fire station are far easier to insure.
In 2022, the median listing price for a home in Snowmass was $6.7 million. In 2023, that dipped to $6.3 million, and as of now, it currently hovers around $6.25 million
The highest annual sales in Snowmass have also skyrocketed, reaching a zenith of $22.43 million. Currently, nearly 60 condo units are pending sale, with prices ranging from $3 million to $12 million
Developers have sold over $700 million in residential properties
He also pointed out that condo insurance is currently more straightforward than insurance for single-family homes, though condo association policies have seen significant increases.
‘The fact that a lot of homes are older is pushing people toward newer or remodeled homes, and they are selling at a premium compared to older homes that may need work or updating,’ Burggraf said.
However, he also noted the potential upside for buyers willing to invest in renovating older homes in Snowmass, suggesting that there could be value in sweat equity for those prepared to take on the challenge.