Luxury Market Insider: Call of the Luxury Mountain Town | Part I
“The mountains are calling and I must go.” America's most famous naturalist and conservationist John Muir penned this declaration over 150 years ago, and his spirit and passion for the Mountain West fervently lives on today. Tectonic plates collided to create the region’s breathtaking and dramatic peaked terrain, just as winter skiing, summer hiking, the fine arts and dining scenes collided to create these exceptionally prized luxury real estate markets.
The Mountain West’s resort towns are as diverse as the massive region itself, so the Luxury Division sat down with a coterie of local real estate agents to learn more about these varied and coveted luxury markets and communities.
“You Pay A Premium To Be Here”
Aspen. Its very name is synonymous with luxury, eliciting images of celebrity sightings, designer snow boots, and colossal alpine estates. Aspen is the granddaddy of the luxury mountain resort town, boasting the most expensive real estate in the Mountain West region with a price tag of a whopping $2,399 per square foot (1).
Why is Aspen so expensive relative to its peers? To Aspen’s #1 agent Steven Shane (2), the answer is obvious. “Aspen has four ski mountains and its gondola goes right to the heart of downtown. It has a scarcity of inventory, as there are tight limits on its developable land. Aspen’s cultural amenities and summer recreation activities are as world-class as its skiing, offering the finest in music, art, theater, restaurants, and shopping. The annual Aspen Ideas Festival is attended by thousands and covers topics such as politics, economics, the environment, technology, health, and education. These elements combine to drive prices higher. Our buyers have a level of expectation that the community of Aspen meets, and understand you pay a premium to be here.”
Doug Leibinger is Compass’ #3 agent in the entire state of Colorado (3), and has witnessed the remarkable feat of Aspen’s allure growing even stronger over the course of his 30-year residency. “There are only a handful of land parcels remaining on which building large generational homes is still permitted, which is increasing upward pricing pressure. When clients ask if Aspen is overrated or overpriced, from my perspective there is nothing more enticing than the Aspen experience, with an unwavering buyer pool of those who can afford the very best. Even our alpine weather is unparalleled, with warmer, longer and sunnier days. Any time I have the opportunity to travel overseas, no matter how incredible the journey, I am always excited to come home to Aspen.”
“This Is A Blue Chip Real Estate Play”
Vail is another outstanding luxury mountain town, ranked among the finest and most expensive ski resorts in the world. Like Aspen, Vail’s skiing is legendary, its summer season is robust and its cultural offerings are extensive. That said, the history and character of Vail is markedly different from that of Aspen. Vail’s #1 agent Tye Stockton (4) explains, “Unlike many other mountain towns, Vail was not originally a mining town. 60 years ago, Vail was carefully planned and specifically built as a resort. It is Bavarian in style, and designed for pedestrians. When you stay here, no car is required.”
Vail’s resort-design origins result in its housing inventory being predominantly condos, which are in such high demand, many are scooped up just a day or two after hitting the market. And the single-family home, especially the scarcest ones set trailside for direct ski-in, ski-out enjoyment? Tye continues, “There are only so many single-family front row opportunities in Vail. The opportunistic purchase is simply the chance to buy one. There is little discounting, this is a blue chip real estate play. Prices have not dropped since pandemic highs.”
One way to increase the chance of landing that coveted ski-in, ski-out retreat is by expanding the search 12 miles west to Beaver Creek, the stunning Vail Valley resort one town over. With its down valley location, Beaver Creek boasts a warmer climate, more open space and more opportunity. Compass - Vall Valley luxury agent David Adkins has sold over $1 billion of real estate across the Vail Valley and details, “Your dollar goes farther in Beaver Creek although the luxury market here is also tight and competitive, with demand far outweighing supply. It’s no wonder, as Beaver Creek offers amazing shopping and dining, outdoor ice skating in winter and top-notch golfing in summer. The Beaver Creek tagline is, ‘Not exactly roughing it.’ People come and never want to leave.”
“A Community As Opposed To A Resort”
Telluride is a luxury mountain town with much to boast about, starting with it has the highest concentration of 13,000- and 14,000-foot peaks in North America (5). Telluride’s #1 agent Bill Fandel beams with pride (6), “Telluride’s mountscape looks like the Alps. Its downtown is landmarked, retaining its original 1870’s Victorian mining town buildings and character. This place is a sophisticated and rarified beauty.”
Telluride is also more of an outpost as compared to Aspen or Vail. “While we now have two nearby airports, historically we were harder to get to.” Fandel explains how this benefitted the town as it evolved. “Telluride is not a place for daytrippers. The town hasn’t been marketed like other mountain resorts. Telluride’s popularity evolved over the generations through word of mouth. Ours is a community as opposed to a resort.” This means no ski lift lines or road traffic downtown, including during the height of the summer. “Summer is actually Telluride’s best season. The climbing, hiking and restaurant scenes can’t be beat. We are a luxury hideaway to get healthy and get away from it all.”
Compass agent Ken Grodberg has been breaking price records on his Telluride luxury home sales (7), and expands upon the market’s outstanding appeal. “Telluride has this rustic elegance and is less crowded than other mountain towns. Telluride evokes deep feelings for people, and with remote work creating more flexibility, they are prioritizing the places and lifestyles they love most. These are the sources of unrelenting demand for premier properties and queues for the best homes, trading at all-time highs.”
“An Emerging Luxury Market Being Discovered”
Jackson Hole has very different luxury mountain market origins. As the gateway to Yellowstone and Grand Teton National Parks, prior to the resort opening in the late 1960’s, Jackson Hole was a summer destination. Compass’ record-breaking Jackson Hole luxury agent Matt Faupel (8) details, “It wasn’t until the 1990’s when it got onto the map as an extreme ski destination, and Jackson Hole’s luxury real estate market began in earnest in 2003 with the arrival of The Four Seasons Hotel.” Atlanta, Chicago and Dallas were the first direct flight markets to Jackson Hole, so ultra-high-net-worth individuals from these markets were among the first to seize upon the extraordinary year-round luxury lifestyle and real estate opportunity. “Wyoming has no state income tax, no tax on the sale of real estate, and no state gift, inheritance or estate tax. These are significant financial incentives for luxury buyers.”
Top-performing Compass - Jackson Hole agent Deb Keenan (9) expands on the unique environment and profile of the community. “We are a highly sought after ultra-luxury market built by high net worth individuals who value lifestyle, community and the great outdoors. Jackson Hole is the last of the Old West, wild and open with 97 percent of Teton County protected federally or by the state for parks, game and wildlife. It is not unusual to see moose crossing the road. We have antler arches in our town square. Our saloons have top hedge fund managers sitting next to cowboys. The landscape drew me here. The people kept me here.”
Per capita, Jackson Hole residents are the most charitable in the country (10), and the biggest draws are its outdoor activities, including golf, fishing, hiking and of course, skiing. “At over 50 years old, Jackson Hole is still an emerging luxury market being discovered,” adds Faupel. “We are not a see-and-be-seen place. People come here to just be.”
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(1) AGSMLS Average Residential Sale Price Per SF: Aspen 1/1/2022-12/20/2022 (2) AGSMLS Member Ranking YTD 1/1/21-12/30/22 (3) Aspen Glenwood MLS, 2022 Ranking Report, All Property Types (4) Vail Board of Realtors MLS, Rankings by Sales Volume 1/1/22- 12/31/22 (5) www.skitripadvisors.com/telluride-mountain-stats (6) TAR MLS Gross Sold Volume by an Individual Agent in Telluride 1/1/22-12/31/22 (7) 127 E Columbia - highest sales price for SF home in Town of Telluride as of date of closing - 7/9/2021; 369 E Galena Ave - highest price per sq ft for SF home in Town of Telluride as of 3/7/23; Source: Telluride MLS Residential Sales, Town of Telluride (8) Highest sale 2021 Jackson Hole, MLS #21-3307:$65 million closed sales price, Hansen Peak MLS 1/1/21-12/31/21 (9) Source: Teton Board of Realtors MLS. Regions include Jackson. Based on residential property sales. 01/01/22-12/31/22. (10) www.businessinsider.com/most-charitable-counties-us-income-tax-data-2019-1#1-teton-county-wyoming-25