Five Points Denver: History and Future Potential
For a long time, Five Points Denver didn’t have the greatest reputation. But heck, Brooklyn also didn’t have a great reputation for the entire latter half of the 20th century, but look at it now; many parts of Brooklyn are more expensive than Manhattan. Five Points Denver is THE area of Denver undergoing classic revitalization, and the cycle goes like this. First, the area is questionable, then the hipsters move in, then the wanting to be cool yuppies move in, and then the condo developers move in! Luckily, 5 points still has a bunch of opportunities for real estate investment, particularly in terms of rentals.
In this guide, we’ll break down the history, current trends, and future outlook for Five Points and what it all means for Denver’s real estate scene.
Where is Five Points in Denver?
Five Points is just northeast of downtown Denver, bordering neighborhoods like RiNo, Curtis Park, and Capitol Hill. It borders LODO as well, which is the most popular spot for nightlife in Denver. It’s one of the city’s oldest and most culturally rich areas, historically known as the “Harlem of the West.” You can walk there from Union Station in about 15 minutes.
Why is 5 Points Denver called Five Points?
Five Points earned its name from the five-way intersection of Washington Street, 27th Street, 26th Avenue, and Welton Street. In the late 1800s, it became one of Denver’s first streetcar suburbs. By the early 20th century, restrictive housing covenants in other areas meant that Black residents were forced to settle in Five Points, which soon became a flourishing community despite these barriers.
By the 1920s to 1950s, Five Points was alive with Black-owned businesses, jazz clubs, and restaurants. Legends like Billie Holiday, Duke Ellington, and Count Basie played on Welton Street. But the 1960s brought decline, urban renewal efforts, redlining, and economic divestment, leaving the area neglected for decades. This is the exact type of area: a prime city location, but neglected, that screams for regentrification.
How did they revitalize Five Points Denver?
Five Points is no longer the overlooked neighborhood it once was. In the past 15 years, it has undergone a powerful transformation, one that’s completely reshaped its streetscape, housing market, and investment profile. Once marked by disinvestment and vacancy, Five Points is now a center of growth, culture, and real estate demand. It’s one of the coolest spots in Denver.
What makes this revitalization different is that it’s been both physical and economic. Historic brick buildings have been converted into restaurants, boutique hotels, and coworking hubs.
Key catalysts behind the shift include:
| Revitalization Catalyst | Description |
|---|---|
| RTD Light Rail expansion | The D Line runs along Welton Street through Five Points, offering direct access to Union Station, Downtown Denver, and Denver International Airport. This connectivity attracts commuters, digital nomads, and short-term rental (STR) guests seeking walkability and convenience. |
| City-led infill development | Under Denver’s Comprehensive Plan 2030, Five Points has been designated for higher density and mixed-use zoning. Developers have introduced new multi-family housing and condo projects, some geared toward flexible leasing and rental arbitrage models. |
| Cultural preservation efforts | Projects like the Rossonian Hotel renovation aim to revive the area’s jazz-era roots while adding upscale amenities. Local art installations, African-American heritage sites, and nonprofit creative spaces are also preserving the neighborhood’s identity amid growth. |
Short-term rentals in 5 Points contributed to the revitalization of the area
Short-term rentals have also played a major role in the area’s evolution. Investors have snapped up homes and condos near the light rail and converted them into high-performing Airbnb listings, thanks to:
- Walkability to restaurants, breweries, and entertainment
- Proximity to downtown and RiNo without downtown congestion
- Distinctive, historic aesthetic that helps listings stand out
- Consistent tourist interest in Denver’s cultural history
| Important trend: Several property managers in the area now specialize in STR units within Five Points, handling compliance with Denver’s primary residence rules, city licensing, and guest turnover. This makes the neighborhood increasingly viable for part-time hosts or investors using a house-hack strategy (living in one unit and renting another). |
Part of Five Points’ gentrification lies in it’s acces to the commerical heart of Downtown Denver, but is commerical heart dead? We spoke to Daniel Gorlovetski the founder and CEO of TLVTech
“Remote work has certainly reduced demand for traditional office space, especially in major urban centers. However, I believe the market will partially recover as companies adopt hybrid models and repurpose office environments for collaboration and team-building. The future of commercial office space will likely focus on flexibility, shared workspaces, and technology-enabled environments rather than a full return to pre-pandemic norms.“
Median home values in Five Points vs. broader Denver
Denver has become expensive, super expensive to those who have lived there for the majority of their lives, especially when it comes to housing. The value of property in Five Points has seen a dramatic upswing over the last decade, outpacing many of Denver’s other urban neighborhoods. According to Zillow data and neighborhood-specific MLS trends, Five Points has evolved from a historically undervalued area to one of the most sought-after investment zones in central Denver.
Between 2015 and 2025, Five Points experienced an 82% increase in median home values, compared to a 93% increase across Denver overall. This is an expensive price appreciation metric, but when adjusting for density, location advantages, and development momentum, Five Points has emerged as one of the highest-performing micro-markets for urban infill investors. The bottom line is that people want to live in 5 Points.
Here’s why this matters:
- Transit access: The RTD light rail runs directly through Five Points, allowing fast, car-free access to downtown Denver, the airport, and RiNo, boosting the neighborhood’s appeal to younger renters and digital nomads.
- Walkability premium: Unlike more suburban neighborhoods, Five Points offers a dense grid of locally owned coffee shops, galleries, and music venues. This lifestyle factor translates into higher per-square-foot prices and stronger short-term rental performance.
- Historical and architectural value: Many homes in Five Points are Victorian or early 20th-century brick buildings, properties with design charm and historic zoning protections. Investors often leverage this aesthetic for STR branding and premium nightly rates.
- Infill development: While other parts of Denver face land constraints or zoning bottlenecks, Five Points has been relatively open to high-density residential and mixed-use projects, especially around the Welton corridor. This combination of old and new has accelerated appreciation.
Five Points rental performance: STR vs. long-term leasing
Five Points has emerged as one of Denver’s most attractive neighborhoods for short-term rentals, thanks to its location, culture, and character. Walkable streets, historic architecture, and proximity to downtown (a 5-minute light rail ride) make the area highly appealing to tourists, digital nomads, and professionals.
The neighborhood’s Instagrammable charm and city-famous nightlife mean that STR listings stand out easily on platforms like Airbnb and VRBO. Hosts can often command higher nightly rates here than in other parts of Denver with similar property types and sizes.
Let’s take a look at how this plays out in real-world numbers.
Example 1: 2-bedroom condo on Welton Street (STR)
| Metric | Details |
|---|---|
| Purchase price | $525,000 (2020) |
| STR usage | 80% of the year (20% owner use) |
| Average nightly rate | $190 |
| Occupancy rate | 70% |
| Gross annual rental income | $48,600 |
| Operating expenses | $22,000 (cleaning, utilities, platform fees, maintenance, insurance) |
| Net income before taxes | $26,600 |
| Approx. ROI | ~5% (unleveraged) |
This property model works well for owners who split time in their homes or want to block off dates throughout the year while still generating reliable income.
But what about investors weighing this model against a traditional 12-month lease?
Example 2: 3-bedroom renovated brownstone (STR vs. LTR)
Let’s compare the same property under two different rental strategies:
What we’re seeing:
- Short-term rentals outperform in gross revenue, but they require more hands-on management and come with higher operating costs, from cleaning fees and guest turnover to booking platform commissions and STR licensing in Denver.
- Long-term rentals provide more predictable cash flow with fewer management needs. They’re ideal for passive investors or owners who don’t want to deal with guest communication or city inspections.
The bottom line? Both strategies yield comparable net returns in this case, but STRs provide greater flexibility and upside potential, especially during peak tourist seasons like summer, holiday weekends, and key events like Juneteenth, the Five Points Jazz Festival, or Denver Startup Week.
For investors who live in their property part-time or want to offset housing costs while keeping personal use, STRs offer a solid solution. Meanwhile, those looking for stable income with fewer headaches may find a long-term lease more appealing in the current Five Points rental landscape. Remember though, 5 points walkability is key and is a huge part of what makes it so valuable for tourists and short-term rentals.
What are the pros and cons of investing in Five Points?
Five Points offers a unique blend of historical character, downtown proximity, and rental potential, but like any real estate market, it comes with trade-offs and downsides. Below is a breakdown of some of the pros and cons that investors might want to be aware of.
| Pros | Cons |
|---|---|
| Strong rental demand near downtown | Rising property taxes and mill levies |
| STR-friendly zoning with proper licensing | Limited inventory due to historic zoning |
| Cultural cachet and neighborhood pride | Gentrification pushback and community tension |
| Transit-connected and highly walkable | Noise complaints in STR-heavy blocks |
| High appreciation potential over time | Higher insurance costs due to older properties |
How property taxes stack up
Five Points falls under Denver’s standard residential property tax framework. For 2025, homeowners and investors are subject to a 72.116 mill levy applied to the assessed value, which is calculated using the state’s 6.95% assessment rate for residential real estate.
To give you a sense of what this means in real dollars, here’s a breakdown of estimated annual property taxes for common home price tiers in the area:
| Home Value | Assessed Value | Estimated Annual Property Tax |
|---|---|---|
| $500,000 | $34,750 | $2,507.53 |
| $650,000 | $45,175 | $3,259.62 |
| $800,000 | $55,600 | $4,007.24 |
While these taxes may appear moderate by coastal city standards, property taxes in Five Points have risen substantially over the past decade, a reflection of skyrocketing property values, redevelopment, and broader growth throughout Denver’s urban core.
What’s next for Five Points?
Five Points is no longer just benefiting from organic growth, it’s now at the center of a deliberate, city-backed redevelopment strategy. Denver’s Comprehensive Plan 2030, which outlines goals for sustainable, inclusive urban development, identifies Five Points as a high-priority district for investment, cultural preservation, and density expansion.
This 2030 vision is already taking shape through targeted policies and capital projects, especially along the Welton Street Corridor, which serves as the historic and economic spine of the neighborhood.
However, this growth hasn’t come without trade-offs.
As property values rise, so do concerns about gentrification and displacement. Longtime residents, many of whom rented their homes, have faced increasing lease rates or have been priced out entirely. The median rent for a one-bedroom apartment in Five Points, once under $1,000 in the early 2010s, now averages between $1,850–$2,200 per month, with luxury units exceeding $3,000.
5 Points and Denver’s Comprehensive Plan 2030
Denver’s Comprehensive Plan 2030 positions Five Points as a priority for smart, inclusive growth. Several initiatives are already reshaping the neighborhood:
- Transit-Oriented Development (TOD): With direct access to light rail and downtown, Five Points is primed for high-density, mixed-use housing near transit stations, attracting renters who value mobility and urban living.
- Historic preservation incentives: Grants and tax credits are available for owners who restore older buildings, encouraging development that maintains the neighborhood’s architectural character and cultural significance.
- Support for minority-owned businesses: Business incubators and city-backed funding aim to revitalize Five Points’ legacy as a hub for Black entrepreneurship, strengthening its cultural roots and community appeal.
- Affordable housing mandates: Inclusionary zoning policies require or incentivize affordable units in new projects, promoting long-term neighborhood diversity and stability.
5 Points is just getting started
Remember, some stars have four points, but the brightest stars have 5 points, just like the 5 Points Neighborhood in Denver. There used to be a time when Denverites used to make fun of 5 Points for being a suspect area, but not now! Those same people who were jesting about the prospect of being in 5 Points 20 years ago are now salivating at the prospect of nabbing a condo for a good deal in the area. The great part about 5 Points is that it’s super central, super walkable, and super cool. All of these “supers” are perfect ingredients for investment with an aim towards short-term rentals.
FAQ
What types of properties perform best as short-term rentals in Five Points?
Properties that blend historic charm with modern amenities tend to perform best as STRs in Five Points. Renovated Victorian homes, stylish condos near Welton Street, and units with strong walkability to bars, restaurants, and light rail stops consistently attract higher occupancy rates. Two- to three-bedroom units offer the best balance of size and rental flexibility, appealing to couples, small groups, and digital nomads alike.
Is Five Points a good neighborhood for first-time investors?
Yes, especially for investors who want a mix of cultural depth, walkability, and rental demand. Five Points offers more than just financial upside, itt provides a dynamic environment where lifestyle amenities support both STR and long-term leasing strategies. That being said, it’s important for new investors to be diligent about local zoning, STR licensing rules, and tax obligations. Partnering with a local property manager or real estate advisor familiar with the area can help first-time buyers avoid costly missteps and capitalize on Five Points’ evolving potential.
How is Denver managing gentrification in Five Points?
The city of Denver has implemented several strategies to balance revitalization with cultural preservation. These include inclusionary zoning policies that require affordable housing in new developments, tax incentives for preserving historic structures, and targeted grants to support Black-owned businesses and local nonprofits.