Denver, CO Housing Market

Market Overview

Denver’s PropertyIQ Score is 3 out of 100, which places the city in a weak position. The top score drivers all point toward cooling conditions: home value momentum over 12 months is -1.36%, home value momentum over 3 months is -1.49%, the median days on market is 57 days, and 31.4% of listings have had a price cut. These indicators suggest that home prices are under pressure and homes are taking longer to sell.

Denver’s fundamentals are above the Colorado state averages in several areas. The median home value is $559,705, which is $26,957 above the state average of $532,748. The rent index is $1,922, compared with $1,761 statewide. Median household income is $105,762, about $10,292 above the state average of $95,470. However, the unemployment rate is 4.1%, slightly above the state average of 3.9%. So Denver has above-average income and rent levels, but the housing market is being held back by price movement and market pace rather than by an especially weak economic base.

Overall, Denver looks like a higher-cost market with solid income and rent fundamentals, but current housing conditions favor buyers over sellers. With 12,998 homes for sale and negative price momentum, the score of 3 out of 100 reflects a cooling market.

Key Trends

First, home value momentum is negative on both the 12-month and 3-month measures. The 12-month change is -1.36% and the 3-month change is -1.49%. The year-over-year home value figure is -$4, a small nominal decline. The 3-month change is a larger percentage decline over a shorter period than the 12-month change, which suggests that recent price softness is not improving.

Second, inventory and time on market point to a slower market. There are 12,998 homes for sale, and the median days on market is 57 days. In addition, 31.4% of listings have had a price cut. No state benchmark is provided for these specific metrics, but the price cut share and the median time on market are both listed as top score drivers, meaning they are meaningful contributors to the low PropertyIQ Score.

Third, affordability is mixed when compared with the state. Denver’s median household income of $105,762 is $10,292 above the state average, while the median home value of $559,705 is $26,957 above the state average. That means incomes in Denver are above the state level, but so are home values. The higher income may help offset some of the price premium, but the absolute median home value is still substantial.

Fourth, rents and employment send a mixed signal. The rent index of $1,922 is $161 above the state average, suggesting rental demand is still relatively firm. However, the unemployment rate of 4.1% is 0.2 percentage points above the state average of 3.9%. Population growth data is listed as N/A, so migration-driven housing demand cannot be assessed from the provided data.

Who Is This Market For

Denver’s current profile is best suited to buyers who can be patient and selective. With a median days on market of 57 days and 31.4% of listings having price cuts, buyers have more room to negotiate than they would in a fast-moving market. However, the median home value of $559,705 is $26,957 above the state average, so first-time buyers will likely need strong income or savings. The median household income of $105,762 helps, but it does not make the market cheap.

Investors may be drawn to Denver more for rental income than for short-term appreciation. The rent index of $1,922 is $161 above the state average, which supports the rental side of the investment case. But the negative home value momentum—down 1.36