Why 73% of homeowners hold mortgages

3 1 minute read

Denver Homeowners Struggle with High Mortgage Rates

According to recent research from Realtor.com, nearly 73% of Denver homeowners carry a mortgage, making it the second-highest rate in the country after Washington, D.C.

Nationally, almost 40% of U.S. homes are owned outright, which is the highest percentage ever recorded. However, Denver’s mortgage-free rate is only 27%, well below the national average.

The high mortgage rates in Denver can be attributed to several factors:

Rising home values: The surge in home prices has made cash purchases challenging.

In-migration of buyers: Many newcomers from expensive markets like California are moving to Denver, driving up prices.

High competition: Demand for homes has exceeded supply, leading to increased prices.

First-time buyers: Denver has a significant number of first-time homebuyers who rely on mortgages to finance their purchases.

Since 2010, the trend towards mortgage independence has increased by 8%, while the percentage of financed homes has decreased by roughly 7%.

Younger buyers in Denver are facing challenges such as high home prices, student debt, and elevated interest rates, making it difficult to enter the housing market.

Many older homeowners in Denver are planning to “age in place,” reducing inventory and intensifying competition for first-time buyers.

The Future of Housing Market

As baby boomers’ homes eventually hit the market, there may not be enough options to meet the demand.

The senior housing sector suffered losses during the pandemic, but occupancy rates have returned to pre-pandemic levels.

According to data from NIC MAP, senior housing occupancy rates in the United States increased from 87.1% in the fourth quarter of 2024 to 87.4% in the first quarter of 2025.

Lisa McCracken, head of research and analytics at NIC, emphasized the need for the industry to ramp up development to meet the growing demand for senior housing.

Disclaimer: The news and editorial staffs of JS had no role in this post’s preparation.