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Why are houses in Boulder so overpriced?

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June 20 2009
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House are only worth what people are willing to pay or they won't sell.  The buyers set the market not the sellers.   Boulder must be able to justify those prices or nobody would be buying.  
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July 19 2012
Boulder has a green belt around it which limits growth within the City. There is simply very little room to build new construction directly in Boulder. Boulder also has a very high quality of life with low-unemployment, many professional jobs and the competition for rentals is stiff because of the large university population. There are several communities immediately surrounding Boulder, such as Louisville, Lafayette, Longmont, Lyons and Broomfield that have lower average home prices. 
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July 19 2012
Supply and demand mostly, also the city is surrounded by state and city parks and open space that limit the city's growth thus making the available properties and land more valuable.

That particular house is located near the University in a very desirable neighborhood for student renters. I wouldn't recommend that property for a primary residence unless you like living near rowdy college students but it would make a great investment property.
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June 22 2009
 
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