A sleepy mountain town in Colorado could soon become a serious rival to the more glamorous Aspen, and the properties are significantly cheaper.
Snowmass Village, located just under nine miles from its famous neighbor in western Colorado, has been home to Snowmass Ski Resort since 1967.
But it is currently undergoing a dramatic transformation thanks to a massive billion-dollar development project, Wall Street Journal reported.
The gradual development of Snowmass Base Village, led by developers East West Partners, Aspen Skiing Company and KSL Capital Partners, is boosting the area with new restaurants, shopping centers, hotels and luxury residences.
With property so expensive in Aspen, some buyers may now be tempted to invest in Snowmass. Real estate in Aspen used to be about 35 percent more expensive, but now prices are 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 billion-dollar development project, Snowmass Base Village, is bringing new shops, restaurants, hotels and luxury 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 one final residential complex currently under construction projected to generate an additional $500 million in sales, the Wall Street Journal reported.
“Most of the houses in Snowmass are older,” Will Burggraf, a real estate agent with Aspen Snowmass Sotheby’s International Realty, told the outlet.
‘There was no high-end residential product to attract high-end clientele. But if you build it, they will come,” he added.
According to Realtor.com, key metrics reveal how Snowmass has become a hot real estate market.
Prices, although high, are falling, according to real estate agent.com. In 2022, the median listing price for a home was $6.7 million. In 2023, that figure dropped to $6.3 million, and as of now, it’s around $6.25 million.
The city’s population of approximately 3,000 year-round residents is supplemented primarily by second home owners, with a smaller number of buyers purchasing properties for full-time residence or investment purposes.
Snowmass attracts buyers from across the United States, as well as international interest.
Among the most sought-after properties are the new residences at Snowmass Base Village. Currently, about 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 Snowmass.
In addition, both mountain and off-mountain single-family homes are available.
Mountain homes feature convenient ski access and modern construction, although many properties lose sunlight earlier in the day due to their north-facing orientation.
Off-mountain neighborhoods offer options with greater sun exposure, although they lack the appeal of ski-in/ski-out access.
As the high-end real estate market grows, Snowmass has also faced challenges when it comes to home insurance.
Tim Morgan, principal at Aspen-based Roaring Fork Insurance, said getting home insurance has become more difficult in recent months.
“Wildfires are the biggest concern in the area,” he said, noting that properties located five minutes from a fire station are much easier to insure.
In 2022, the median listing price for a home in Snowmass was $6.7 million. In 2023, that figure dropped to $6.3 million, and as of now, it’s around $6.25 million.
Snowmass’ highest annual sales have also skyrocketed, reaching a zenith of $22.43 million. Currently, nearly 60 condominium units are pending sale, with prices ranging from $3 million to $12 million.
Developers have sold more than $700 million in residential properties
He also noted that condo insurance is currently simpler than single-family home insurance, although condo association policies have seen significant increases.
“The fact that many 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 renovations or updates,” Burggraf said.
However, he also noted the potential benefit for buyers willing to invest in renovating older homes in Snowmass, suggesting there could be value in sweat equity for those prepared to take on the challenge.