Denver, Colorado, has long been an attractive place to live, thanks to its vibrant culture, proximity to the Rocky Mountains, and thriving economy. Whether you’re looking to move to Denver or invest in its real estate market, understanding housing costs and market trends is essential. Let’s explore the current housing market in Denver, including population growth trends, home prices, and the best neighborhoods for investment.
Denver’s Population Growth and Its Impact on Real Estate
Denver has seen significant population growth over the past decade, although recent trends indicate a slowdown. Between 2010 and 2020, the city’s population increased by nearly 20%, adding over 115,000 residents. However, from 2022 to 2023, the population grew by just 0.4%, marking a notable deceleration. As of 2024, Denver’s population stands at approximately 716,234, reflecting a slight 0.19% decrease since the 2020 Census. Meanwhile, the broader Denver-Aurora-Centennial metro area has grown by 1.2% from July 2020 to July 2023, adding more than 35,000 new residents.
This population growth has significantly influenced Denver’s housing demand, leading to increased home prices and limited inventory.
Denver Housing Market Trends in 2024
Denver’s housing market remains competitive, with home prices continuing to rise despite some fluctuations. Here are the key insights:
- The median home price in Denver as of December 2024 is approximately $687,672, a 4.8% increase from the previous year.
- Denver is still a seller’s market, where demand continues to outpace supply.
- Active housing inventory in December 2024 stood at 4,696, up 32.27% from the previous year, though still insufficient to meet buyer demand.
- The average monthly rent for a single-family home is approximately $2,150, with vacancy rates hovering around 4%.
Cost Breakdown of Buying a Home in Denver
1. Closing Costs
- Buyers should expect to pay 2% to 5% of the home price in closing costs, including inspections, title fees, and loan origination fees.
2. Property Taxes & HOA Fees
- Denver’s property tax rate is around 0.49%, lower than the national average.
- HOA fees vary widely but typically range from $200 to $400 per month, depending on the community.
3. Down Payment & Loan Options
- FHA loans allow as low as 3.5% down, while conventional loans typically require 5-20% down.
- First-time homebuyers may qualify for down payment assistance programs.
Cost of Living: Denver vs. Other Major Cities
Denver remains more affordable than major coastal cities like San Francisco, Seattle, and New York, but living expenses are steadily climbing.
- Utilities: Expect to pay around $150 monthly, aligning closely with national averages.
- Transportation: Costs remain relatively affordable, offering significant savings compared to pricier coastal cities.
- Groceries: Prices are generally on par with the national average.
- Dining Out: Eating at restaurants and cafés is increasingly costly, reflecting Denver’s rising popularity and economic growth.
First-Time Homebuyer Tips for Denver
Buying your first home in Denver? Use these simple tips to make the process easier:
- Get Pre-Approved for a Mortgage
Getting pre-approved clarifies your budget, shows sellers you’re serious, and speeds up the buying process. - Work with a Local Real Estate Agent
A trusted local agent can help you find the right neighborhood, understand the market, and guide you through the buying process. - Consider Townhomes or Condos
Townhomes and condos are often more affordable than single-family homes, require less upkeep, and may offer community amenities like gyms or pools. - Stay Updated on Market Trends
Regularly check home prices, interest rates, and neighborhood developments to find the best opportunities and promising areas for investment. - Schedule a Home Inspection
A thorough home inspection helps you uncover hidden issues early, potentially saving you money and headaches later. - Think About Commute and Lifestyle
Choose a location close to schools, transportation, parks, and amenities that fit your daily life. A convenient location will significantly boost your long-term happiness. - Keep Future Resale Value in Mind
Pick a home in a neighborhood with good schools, attractive amenities, and stable growth to ensure your property retains or increases its value.
Following these tips will help you confidently purchase a home that fits your lifestyle and financial goals in Denver.
Best Time to Buy a Home in Denver
Knowing when to jump into the market can give you an edge, helping you land the right home at the right price.
- Winter months (December – February) tend to have less competition and lower prices.
- Spring and summer see higher demand, making it more challenging for buyers.
- Interest rates may impact affordability, so watch for market shifts.
Ultimately, the best time to buy in Denver depends on your priorities. Whether you value lower prices or more choices, understanding seasonal trends and interest rate shifts will position you for a smarter home-buying decision.
Common Pitfalls to Avoid When Buying in Denver
- Overpaying in bidding wars – set a budget and stick to it.
- Ignoring hidden costs – factor in maintenance, HOA fees, and property taxes.
- Skipping the inspection – Denver homes may have issues like outdated plumbing or foundation cracks.
Best Areas to Buy a Home in Denver
Despite rising prices, Denver offers numerous attractive neighborhoods for homebuyers and investors. Here are some of the best areas to consider:
Longmont
Located outside Boulder, Longmont offers more affordable housing while maintaining excellent recreational and cultural amenities. The city has nearly doubled its population in the past two decades, revitalizing its historic downtown.
Lakewood
A growing city with access to both Denver and the Rocky Mountains, Lakewood boasts a strong economy, job opportunities, and a lower unemployment rate compared to the national average.
Capitol Hill
An affordable downtown neighborhood, Capitol Hill is perfect for young professionals. Around 80% of residents rent their homes, and the area features a mix of historic buildings, bookstores, retro diners, and new apartments.
Five Points
A thriving multicultural neighborhood, Five Points is known for its vibrant nightlife, soul-food restaurants, and historic music venues. The area attracts many young professionals and creative residents.
Platt Park
One of Denver’s most desirable neighborhoods, Platt Park offers pedestrian-friendly restaurants, shopping, and a mix of 1920s bungalows and modern townhomes.
Congress Park
A historic urban neighborhood featuring Denver Squares, bungalows, and Victorian homes, Congress Park is one of Denver’s most sought-after areas for homebuyers.
Why Choose Denver?
Denver offers a high quality of life with its combination of outdoor activities, strong job market, and dynamic city culture. The Mile High City provides the benefits of urban living alongside access to nature, making it an attractive choice for individuals and families alike. With over 300 days of sunshine each year, residents enjoy a comfortable climate perfect for outdoor enthusiasts. From hiking trails and ski resorts to bustling breweries and cultural attractions, Denver has something for everyone.
If you’re considering buying a home in Denver, now is the time to explore your options before prices rise further. Whether you’re looking for an investment opportunity or a place to call home, Denver’s housing market has something for everyone. The city’s growing economy, top-rated schools, and thriving tech industry make it a desirable place to live for professionals and families alike.
Ready to Call Denver Home? Let’s Make It Happen!
Our team is here to help you navigate Denver’s competitive housing market. Get expert guidance, a seamless home-buying and moving experience, and the support you need to make your move stress-free. Get in touch today and take the first step toward your dream home in Denver!