Denver Real Estate Market 2026: The Data Behind a Score of 76

Denver scores a 76 out of 100 on the PropertyIQ index as of February 28, 2026.

If you look at the headline numbers — 56% overvalued, home values declining, Zillow forecasting -1% near-term — a score of 76 might seem surprising. It is worth explaining what is happening in this market and why the score sits where it does.

The Core Data (as of February 2026)

• Median listing price: $564,995
• Home values: -1.31% year over year
• Inventory: 8,171 homes for sale, up 15.86% year over year
• Days on market: 38 — among the fastest in the country
• Demand score: 12.7 out of 100
• Supply score: 96.7 out of 100
• Pending ratio: 0.47
• 18.4% of listings have had price cuts
• Overvalued: 56% relative to local fundamentals
• Zillow forecast: -1% near-term
• Median household income: $102,339 (2023 Census)

Why the Score Is 76 Despite Weak Demand and Overvaluation

The PropertyIQ Score is a composite index. In Denver's case, the supply constraint score is very high (96.7) — the market is showing signs of being historically undersupplied relative to its population base, even with inventory rising. Denver's 5-year appreciation of 4.66% reflects constrained long-term supply.

The 38-day average on market is also strikingly fast for a market with declining values — homes are moving in just over five weeks despite 8,171 competing listings. That speed signal contributes to the score.

The Overvaluation Caveat Is Real

Denver at 56% overvalued means current prices significantly exceed what local income fundamentals would support. The income required to buy at current prices is approximately $150,173 in a metro with $102,339 median household income. That gap is meaningful. The score does not ignore this; it factors it in. A fully equilibrated Denver market would likely have a higher score.

What This Means in Practice

Denver is not Austin (18) or Nashville (26). The supply fundamentals are genuinely strong. But the overvaluation, combined with a negative near-term price forecast, means the near-term return profile is unfavorable relative to markets scoring in similar ranges but trading closer to fundamental value.

Investors using the PropertyIQ Score alongside the underlying metrics — not just the headline number — will see both the supply strength and the valuation risk. The score captures both; the investor decides how to weight them.

PropertyIQ score as of February 28, 2026. Listing data as of February 1, 2026. Forecast and rent data as of late 2025. All data for informational purposes only.