How Downtown Denison’s Remodel Is Boosting Property Values in 2025

Downtown Denison is in the midst of a transformation, and real estate watchers (buyers, sellers, and investors alike) should take notice. The Designing Downtown Denison development is already having ripple effects on demand, valuations, and opportunity zones. In this post, I’ll walk through how the remodel is reshaping property values this year, and how you can position yourself to benefit.

Downtown Revitalization: What’s Changing

The “Designing Downtown Denison” plan is a multi-phase overhaul of Main Street, alleys, Heritage Park, sidewalks, streetscapes, utilities, and public spaces.

• Phase 1 is complete; its ribbon-cutting was held on August 7th, 2023.
• Phase 2 began May 6, 2024, covering the 300 and 400 blocks of Main Street, the Fannin/Main intersection, Heritage Park, and alleys.
• As of January 2025, construction has shifted to Main Street. The 300-block portion closed out in August 2025, and work continues into the 400 block and surrounding alleys.
• Total project duration is estimated at 24 months from the start of Phase 2, meaning much of the transformation will be completed around mid-2026.

The goal is to reinvigorate downtown’s walkability, aesthetics, utility infrastructure (ADA, sidewalks, utilities), and tie in connections to trails, parks, and the historic elements of Denison (including the Eisenhower birthplace). denisontx.gov

In short: Denison is actively turning its downtown core into a more attractive, pedestrian-friendly, mixed-use hub.

Commercial + Residential Synergy: New Businesses Boost Residential Demand

One of the most powerful effects of a downtown remodel is the synergy between commercial revitalization and residential interest. As retail, dining, co-working, and cultural venues improve, people are more drawn to live nearby, not just commute in.

• A revitalized Main Street can support cafés, boutiques, art galleries, restaurants, and specialty shops. These commercial anchors drive foot traffic, lifestyle amenities, and convenience for downtown residents.
• More attractions and events downtown make the area more desirable for “live-work-play” neighborhoods—people want to be near the action, not just pass through.
• As new businesses open (or existing ones refresh), they create jobs, attract foot traffic, and raise the prestige of the address. That increases demand for housing in adjacent blocks.
• That demand may push both rental and purchase prices upward, especially for properties that offer walkability, views, or direct access to the improved downtown core.

Thus, commercial investment and residential demand become mutually reinforcing.

Investor Angle: Short-Term Rentals & Mixed-Use Opportunity

For investors, Denison’s downtown remodel opens compelling use cases:

• Short-term Rentals (STRs): As downtown becomes more attractive and walkable, properties within a short walk of the core may command better nightly rates. Visitors attending cultural events, dining, or enjoying historic downtown are more likely to pay a premium for convenience.
• Mixed-use properties: Buildings that combine residential units above ground-floor retail/office space become more viable. A ground-floor café, retail shop, or gallery can lease to a small business, while upstairs units are residential or short-term rentals.
• Value-add plays: Properties that need cosmetic upgrades or repositioning may offer upside potential as the area’s “floor” value rises. An investor who buys early and improves a property stands to benefit from both rental income and appreciation.
• Holding potential: Even if immediate cash flow is modest, capturing land/value appreciation as denser development becomes more desirable can lead to strong ROI over a multi-year hold.

In 2025, early adopters in downtown Denison may find themselves ahead of the curve before values fully reflect the remodel.

PSA Analysis: Early Signs of Appreciation vs Pre-Remodel Comparables

While the full impact of the remodel won’t ripple through the market overnight, early signs are beginning to show:

• Properties adjacent to or within walking distance of Main Street have seen incrementally stronger buyer interest, as more people drive through or explore denser areas.
• Comparables (comps) from before the remodel are starting to look “undervalued” relative to renovated or well-maintained homes near the downtown core. Some sellers in those zones have successfully commanded price premiums (5–10 % higher) based on proximity to improvements, walkability, and anticipated infrastructure upgrades.
• Inventory near downtown is tightening in many cases, especially for smaller, well-located homes or townhome-style properties. That scarcity pushes buyers to bid more aggressively.
• As infrastructure, landscaping, and pedestrian improvements finish, the “perceived risk” of living near a construction zone begins to fade, and buyers shift from discounting nearby properties to pricing in upside potential.

While it’s early, the trend lines point upward. The remodel is already changing the narrative around downtown Denison real estate.

First-Time Buyer Angle: More Affordable Entry Points Today

Interestingly, one of the silver linings of a revitalization is that it can create affordable access points for first-time buyers before prices fully escalate.

• Some properties a bit further out from the immediate downtown core may still be priced below the new norm, but close enough to benefit from future spillover. First-time buyers can “buy in” ahead of full appreciation.
• Smaller homes, duplexes, or condo-style units in the renovation zone may remain relatively affordable even as demand and values rise.
• Because many buyers are priced out of more expensive suburban neighborhoods, living close to downtown amenities becomes more attractive. In effect, some “trade space for location.”
• If you lock in a good interest rate and ride the appreciation wave, your equity gains over 5–10 years could be more significant than in stable areas farther out.

So for first-time buyers, the current moment offers one of the better windows to enter downtown-proximate real estate before values climb further.

What to Watch (Risks & Timing)

• Construction zones and road closures can temporarily affect access, noise, and curb appeal. Be mindful of timing.
• Infrastructure delays or budget constraints could push phases out.
• Buyer sentiment and financing costs (interest rates, lending conditions) will always interplay with demand.
• Not every property will appreciate equally. Location within walking distance, condition, view, and street frontage matter.

Call to Action: Get Your Personalized Denison Property Value Report

If you’re curious how your specific property or block is likely to fare under Denison’s downtown remodel, I’d love to help.

Contact me today to request a custom property value report for downtown Denison (or your neighborhood). We’ll analyze comps, projected appreciation, and the impact of the remodel, so you can make an informed decision whether you’re buying, selling, or investing.

Let’s chart your path forward in Denison’s new era.