Denver, CO Housing Market
AI-powered market intelligence for the Denver-Aurora-Centennial, CO metro area.
PropertyIQ Scores
Denver, CO Market Analysis
Market Overview
Denver’s PropertyIQ Score of 4 out of 100 places the metro in a weak position relative to typical market momentum and balance. The score is driven by a 12-month home value momentum of -0.36%, a 3-month home value momentum of -1.87%, a median days on market of 51 days, and a 30.9% share of listings with a price cut. Each points to cooling conditions, with the shorter-term momentum decline sharper than the 12-month trend.
Against state benchmarks, Denver still shows structural advantages. The median home value is $566,529, $27,597 above the Colorado state average of $538,932. The rent index is $1,930, compared with $1,693 statewide, and median household income is $102,339, above the $92,470 state average. Unemployment is 3.9%, matching the state. These figures suggest Denver’s income and rental base is stronger than the state, even as price momentum turns negative.
However, market balance is weak. There are 12,813 homes for sale, and the reported year-over-year home value change was -$3, effectively flat. Population growth data is not available. Overall, the low score reflects weakening price momentum and slower sales conditions rather than a collapse in local incomes or employment.
Key Trends
First, price momentum has turned negative. The 3-month home value momentum of -1.87% is steeper than the 12-month figure of -0.36%, indicating that prices have softened more quickly in recent months. The year-over-year home value change of -$3 remains essentially flat, pointing to lost upward pressure rather than severe annual depreciation.
Second, supply conditions are loosening. Median days on market is 51 days, and 30.9% of listings have had a price cut. With 12,813 homes for sale, buyers have more inventory and sellers are adjusting prices to attract offers, conditions that typically give buyers more negotiating room.
Third, affordability is mixed. Denver’s median home value of $566,529 is higher than the state average, but median household income of $102,339 is also higher than the statewide $92,470. The home value-to-income ratio is roughly 5.5, slightly below the state-level ratio of about 5.8 using these averages. At the same time, the rent index of $1,930 is well above the state average of $1,693, meaning renters also face elevated costs.
Fourth, the labor market is stable but not enough to offset housing softness. The unemployment rate is 3.9%, equal to the state average. Population growth data is not available, so the demand side remains only partially visible.
Who Is This Market For
Denver’s weak PropertyIQ Score and cooling metrics make this market most suitable for buyers and investors with a longer time horizon and the ability to negotiate. First-time buyers may find opportunities in the elevated share of price cuts and slower days on market, but the median home value of $566,529 is still high relative to typical entry-level budgets, even with median household income above $100,000. Those with stable financing and secure employment may be able to take advantage of sellers who are cutting prices.
Move-up buyers could benefit from the inventory of 12,813 homes for sale and the 30.9% share of listings with price cuts, but they should expect their existing home to sell more slowly, with a median of 51 days on market. This is not a favorable environment for short-term flippers or appreciation-focused investors because home value momentum is negative on both a 12-month and 3-month basis.
For rental-focused investors, the rent index of $1,930 is well above the state average of $1,693, which may support rental income assumptions. The stable unemployment rate of 3.9% also supports tenant demand. However, with home values softening, investors should not rely on near-term appreciation and should underwrite based on cash flow and holding period.
Outlook
The near-term outlook is for continued softness. The 3-month home value momentum of -1.87% is notably weaker than the 12-month figure of -0.36%, indicating the market is cooling more quickly in recent months. With 30.9% of listings showing a price cut and median days on market at 51, sellers are likely to face continued competition. Inventory of 12,813 homes for sale gives buyers alternatives and reduces urgency. The stable 3.9% unemployment rate provides some support, but the absence of population growth data limits the ability to identify a demand rebound. Based on the provided numbers, the data points toward flat to modestly declining home values in the near term unless price momentum stabilizes and the share of price cuts begins to fall.
AI-generated analysis based on current market data. Last updated August 25, 2026.
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Denver, CO market data
Denver, CO Housing Market Overview
Denver, CO's median home value is $567K, down 0.4% over the past year. Homes here sell in a median 51 days. Its PropertyIQ Score of 4 sits below the state average of 50, marking a market positioned to lag its state over the next three years.
Whether you're considering buying a home, investing in rental property, or weighing entry timing in the Denver, CO area, the PropertyIQ Score gives you a single, data-first read on relative market strength. It is validated against actual market outcomes from 2001 to 2023, with a positive score-to-return relationship in every validated year across CO and every other US state.
Mountain West markets combine outdoor lifestyle appeal with booming tech and remote-work migration. Cities across Colorado, Utah, Arizona, and Nevada have experienced some of the nation's fastest appreciation, though rising interest rates have introduced new dynamics to these previously red-hot markets. Within the Mountain West, Denver, CO's PropertyIQ Score of 4 runs below the Mountain West norm.
Colorado's housing market reflects the state's appeal to remote workers and outdoor enthusiasts. Denver's tech sector growth has pushed prices into new territory while mountain communities face their own supply challenges.
The PropertyIQ Score for the Denver, CO market is built from four inputs: Zillow home-value momentum over twelve months, Zillow home-value momentum over three months, the median days listings spend on the market (Realtor.com), and the share of listings with a price cut (Realtor.com). The score runs on a 1 to 99 scale computed across all metro markets nationally and calibrated so 50 equals the state average — a score above 50 means this market is positioned to outperform its state, and a score below 50 means it is set to lag. Momentum here has been negative, with home values down 0.4% over the past year.
Explore the interactive map to see how Denver, CO compares to neighboring metros, or view the full market dashboard for detailed analytics including time-series trends, score breakdowns, and AI-generated market reports.
Counties in the Denver, CO metro area
ZIP codes in the Denver, CO metro area
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Market data through July 2026. Sourced from Zillow, Realtor.com, Redfin, U.S. Census Bureau, FRED, BLS, and BEA. Per-statistic source and date shown above.
Frequently Asked Questions
Is Denver, CO a good place to buy real estate in 2026?
PropertyIQ doesn't label markets simply good or bad. Instead, the PropertyIQ Score measures a market's demand momentum against its own state, where 50 marks the state average. Denver, CO currently scores 4, a very weak-momentum reading that leaves it positioned to lag its state over the next three years. For buyers, cooling demand usually brings more inventory, longer sale times, and real leverage to negotiate on price. Backing that up, the median home value here is $567K, down 0.4% over the past year. So whether Denver, CO is right for you comes down to your goals: a rising-momentum market can favor long-term appreciation but offers less room to negotiate, while a cooling one hands buyers more leverage. Treat the score as a timing signal to weigh alongside your budget, holding period, and plans for the property, not a verdict on the market's quality.
What is the PropertyIQ Score for Denver, CO?
Denver, CO's PropertyIQ Score is 4, indicating very weak momentum on a 1-to-99 scale. The score distills four transparent inputs into a single number: Zillow home-value momentum over the past 12 months, Zillow home-value momentum over the past 3 months, the median days homes spend on the market from Realtor.com, and the share of listings with a price cut, also from Realtor.com. Rising values and faster sales push the score up, while slow sales and frequent price cuts pull it down. The scale is calibrated so 50 equals the state average, meaning a score above 50 predicts the market will outperform its state over the next three years and a score below 50 predicts underperformance. PropertyIQ computes the score across every US market nationally, then recenters it against each state, so 4 places Denver, CO below its state benchmark.
Are home prices in Denver, CO rising or falling?
Home prices in Denver, CO are falling. Over the past year, the median home value declined 0.4%, reaching $567K. Over the latest three months, values slipped 1.9%, a sign near-term demand is softening. PropertyIQ derives these figures from Zillow's home-value index, which tracks the typical value across the market rather than only the homes that happened to sell, giving a steadier read than a raw median sale price. Both the 12-month and 3-month momentum readings feed directly into the PropertyIQ Score, so this price trend is one of the core signals behind Denver, CO's current score. Keep in mind that appreciation can vary widely by neighborhood and price tier across the metro area, so treat these figures as the market-wide baseline rather than a guarantee for any single property.
How quickly do homes sell in Denver, CO?
In Denver, CO, homes sell in a median of 51 days from listing to pending sale, based on Realtor.com market data. Median days on market is one of the clearest real-time reads on local demand: when homes move quickly, buyers are competing and sellers hold the advantage, while lengthening timelines signal cooling interest and more room to negotiate. Alongside sale speed, about 31% of active listings here have taken at least one price cut — a complementary demand gauge, since a rising share of reductions often precedes slower sales and softer prices. Both median days on market and the price-cut share feed directly into the PropertyIQ Score, where faster sales and fewer cuts push the score higher. As a general guide, medians under about 30 days indicate a brisk, competitive market, while medians well beyond 60 days point to buyers regaining leverage. Actual time on market still varies by price band, property type, and season, so treat the median as a market-wide baseline.
How current is this metro area data?
This Denver, CO market data is refreshed on a monthly cycle, with the latest figures current through July 2026. PropertyIQ ingests fresh data every month from a range of authoritative sources: home values and rents from Zillow, days on market and price-cut activity from Realtor.com, additional housing signals from Redfin, demographic and housing-stock data from the U.S. Census Bureau, mortgage and macroeconomic series from FRED, and employment figures from the Bureau of Labor Statistics and the Bureau of Economic Analysis. The PropertyIQ Score itself is recomputed every month once the new source data lands, so the score and its four underlying inputs always reflect the most recent complete reporting period rather than a static snapshot. Because official housing data is typically released with a short lag, the current-through date usually trails the present by a few weeks, which is normal across the industry and not a sign the data is out of date.