Denver: A Popular Destination Despite Homebuying Challenges

Denver continues to attract homebuyers, but escalating prices and high interest rates are making homeownership increasingly challenging for residents.

While a significant percentage of Americans are willing to relocate in search of affordable housing, many Denver locals are grappling with substantial mortgage debts.

Denver’s Enduring Allure

A recent report by JW Surety Bonds highlights Denver as the third most sought-after city for homebuyers, with millennials ranking it as the top choice.

The report reveals:

• 55% of Americans are open to moving to a different city for affordable housing
• 54% consider home prices to be exorbitant
• 44% find mortgage rates unreasonably high
• 43% are willing to relocate out of state, and almost 1 in 5 would explore international options
• 42% would opt for a smaller home
• 23% would contemplate co-buying with friends or family to make homeownership feasible
• 39% would consider taking on a second job or side gig

Denver’s Affordability Challenge

An analysis by WalletHub on home prices in 300 markets between the first quarter of 2019 and the first quarter of 2025 ranks Denver 124th in terms of affordability.

Another WalletHub study examining mortgage debt trends in the third and fourth quarters of 2024 places Colorado as the 10th state with the highest increase in mortgage debt.

According to a report by Clever, only Detroit and Pittsburgh offer residents median salaries sufficient to afford a median-priced home.

The report also highlights that seven of the 10 most unaffordable cities are in the West, with Colorado securing the 10th spot on the list.

Although Colorado boasts a median income of $92,911, exceeding the national median of $77,719, the state’s median home price of $623,000 far surpasses the U.S. median of $438,000.

To afford a median-priced home in Colorado with a 20% down payment, buyers need an annual income of $174,149, creating a significant income disparity.

Based on the current median income, Colorado residents can only afford a home priced at $332,379.

Mortgage Debt Strain

A study by Highland Cabinetry ranks U.S. states based on mortgage burden, with California leading the list with a debt-to-salary ratio of 0.91.

Colorado closely follows, with a mortgage-to-income ratio of 0.90 and an average mortgage debt of $69,750 per homeowner.

Despite home prices being lower than California’s, Colorado still faces considerable challenges with a median price of $640,000.

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