H5game8

Those who understand emerging markets will be the ones clients trust, Blake O’Shaughnessy writes, while those focused only on legacy luxury markets risk missing where demand is actually forming.

Inman Connect

Invest in yourself, grow your business—real estate’s biggest moment is in New York!

If you only read national headlines, you’d think luxury markets like Aspen, Vail and Telluride still define the Colorado housing story. But dig into the numbers, and the energy is shifting, down the valleys, into smaller, lifestyle-driven towns that are becoming magnets for both buyers and long-term investors.

TAKE THE INMAN INTEL INDEX SURVEY

The real action isn’t in the markets that have already peaked. It’s in the ones quietly catching up.

Across the state, upgrades to airports, resort infrastructure and transportation links are setting off a ripple effect. Markets that used to play supporting roles are emerging as the main story, and they’re doing it with stronger fundamentals and more room to grow.

The new wave: Where demand is really building

Steamboat Springs is a prime example. The Wild Blue Gondola and base-area redevelopment have transformed the flow of both visitors and residents. More lift capacity means higher throughput, and in resort economics, that directly translates to demand resilience. Nightly rates are holding, second-home demand is firm, and transaction volume has remained stable even as other markets cooled.

Over in Winter Park, Fraser and Granby, a similar story is unfolding. Town-to-resort connectivity projects and snowmaking upgrades are fueling what locals call the “park once” lifestyle, everything within reach, year-round. Those convenience upgrades tend to push price pressure up the valley, and you can already see early signs in how fast well-located homes in Fraser are moving.

Then there’s Crested Butte and Gunnison, which might be one of Colorado’s quietest success stories. Transaction growth in 2024 surprised many analysts. With limited in-town inventory, demand is spilling into surrounding neighborhoods and Gunnison proper, where relative affordability still exists … for now.

Further west, Montrose has become a strategic “gateway” market. Its airport expansion and infrastructure investments are making Telluride more accessible while offering buyers an affordable foothold within driving distance. Historically, that combination of access and affordability creates a tailwind that compounds over time.

And finally, Eagle and Gypsum, down-valley from Vail, are seeing their moment. These communities act as release valves for buyers priced out of the core luxury market. As inventory tightens in Vail and Beaver Creek, move-up and workforce buyers flow into Eagle County’s smaller towns, compressing the price gap and fueling steady appreciation.

What these towns have in common

At first glance, these markets look completely different. But the underlying mechanics are the same. For agents working with high-net-worth and second-home clients, these markets represent where capital is quietly moving next, before pricing and competition catch up.

Each has a major infrastructure upgrade either in progress or recently completed. Whether it’s a new gondola, snowmaking expansion or airport terminal, those big-ticket projects tend to spark appreciation 12 to 24 months before completion. Buyers “price in” the coming convenience long before the ribbon-cutting.

They’re also supply-constrained. Geography and strict zoning leave little room for large-scale expansion. When marginal demand increases, prices move sharply, not because of speculation, but because there’s simply nowhere else to build.

And finally, they have diversified economies. Unlike pure resort towns, places like Steamboat, Gunnison and Eagle County have year-round demand from healthcare, education and remote work. That four-season stability makes them less sensitive to rate fluctuations and better positioned for sustained growth.

The slowdown at the top

Meanwhile, the traditional crown jewels like Aspen and Telluride are cooling.

Both markets saw extraordinary appreciation during the pandemic, with Aspen up roughly 65 percent and Telluride nearly 95 percent in just three years. That kind of growth inevitably brings gravity.

Aspen’s challenge now is absorption. Inventory is building, and months of supply have crept close to 10. At the same time, transaction activity and inventory trends in markets like Steamboat and Grand County have remained steadier by comparison, supported by infrastructure-driven demand rather than trophy pricing.

Additionally, the multi-year airport modernization and base redevelopment near Ajax are creating short-term friction that can make discretionary buyers hesitate. Add in higher taxes, rising insurance premiums and HOA costs tied to wildfire risk, and even the most insulated markets start to feel the squeeze.

Telluride is entering a similar stabilization phase. Inventory is edging up, local policy shifts around short-term rentals have added uncertainty, and while the fundamentals remain strong, there’s less urgency at the top. It’s still healthy, just not on fire.

None of these signals a crash. It’s a normalization after an overheated cycle. But it does show that for investors and second-homebuyers, the next two years of appreciation are far more likely to cluster outside the legacy luxury cores.

Why the next chapter is written in the valleys

If the pandemic redefined where people could work, this next chapter is redefining where they want to live. The appeal of smaller mountain communities isn’t just affordability; it’s livability. Buyers want to drive less, walk more and actually use the homes they buy. They want Wi-Fi, year-round activity and a sense of community that stretches beyond ski season.

These secondary markets check every box. They’re connected, functional and increasingly self-sustaining. And as infrastructure improves, they stop being “alternatives” to major resorts; they become destinations in their own right.

What’s showing up more often is clients starting their search in Aspen or Telluride, then expanding once they understand access improvements, inventory dynamics and year-round livability in nearby markets. The winning strategy isn’t chasing trophy listings; it’s acting earlier, writing clean offers and targeting areas positioned to benefit from infrastructure already underway. That’s where agents can still add real value.

The national headlines might still focus on Aspen and Telluride, but the smart money is already looking elsewhere.

The bottom line

Colorado’s next wave of appreciation won’t be about prestige; it’ll be about practicality.

If you follow the lifts, the airports and the valleys that offer everyday livability, you’ll find where growth is headed. And if history is any guide, these “supporting markets” won’t stay secondary for long.

Because the real story in mountain real estate isn’t about where the wealthiest buyers park their capital. It’s about where the next generation of homeowners can still find value, and where infrastructure, access and lifestyle are finally aligning.

For agents, this shift changes everything. The professionals who understand these emerging markets will be the ones clients trust for real insight, not just listings, while those focused only on legacy luxury markets risk missing where demand is actually forming.

That’s where the future is being built.

Blake O’Shaughnessy is co-founder and CEO at Ownii. Connect with him on Instagram and LinkedIn.

Topics: buyer's agent | leadership Show Comments Hide Comments Sign up for Inman’s Morning Headlines What you need to know to start your day with all the latest industry developments Sign me up By submitting your email address, you agree to receive marketing emails from Inman. Success! Thank you for subscribing to Morning Headlines. Read Next