Castle Rock, Colorado Housing Market

What stands out in Castle Rock?

• Population is up 25.0% over five years: among the fastest population growth of 763 tracked cities. Growth brings tenants and buyers.
• The median household earns $156,118 a year: among the highest incomes of 763 tracked cities. Tenants can carry higher rents.
• 19% of occupied homes are rented: among the lowest renter shares of 763 tracked cities. Most residents own, so the tenant pool is thin. Your exit buyer may be an owner-occupant.

Is housing keeping up with Castle Rock's growth?

The population in Castle Rock's ZIP codes grew 25.0% over five years, faster than 98% of the cities we track. Households (+30.1%) and housing (+29.8%) grew in step. Homes for sale are 31% above 2017–2019 at this time of year.

Is now a good time to buy in Castle Rock?

The median asking price is 26.9% below its Dec 2020 peak. Per square foot the gap is smaller: 9.7% below the Mar 2022 high. Part of the drop is smaller homes coming to market. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller. Castle Rock prices rose in only 77 of the last 112 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

The discount is already here. It is not getting bigger. Buy now while sellers are still weak. Waiting for a lower price stopped working a year ago.

Who will rent from you in Castle Rock?

Only 19 out of every 100 Castle Rock households rent. This is an owners' town. That share has held steady for five years. Castle Rock added about 1,700 renter households in five years. Renter households average 2.2 people. Two and three bedrooms fit the typical renter.

The median Castle Rock household earns $156,118 a year. Incomes here have grown 5.0% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 4.6 times the median income. That is the national middle. Neither cash flow nor appreciation is free here. At 30% of income, a tenant on the median income can pay about $3,903 a month.

To see what one Castle Rock address would rent for and cash flow, run it through the app.

How does Castle Rock compare with other Colorado markets?

Ranked among the 38 Colorado markets we track:

• Asking price: 14th priciest of 38. Castle Rock is at $723,077. Closest: Parker and Pagosa Springs.
• Buyer competition: 11th least competitive of 33. Castle Rock is at 0.23 buyers per home. Closest: Thornton and Golden.
• Time on market: 18th longest time on market of 38. Castle Rock is at a median of 72 days on market. Closest: Colorado Springs and Pueblo.
• Price cuts: 9th most price cuts of 38. Castle Rock is at 29% of sellers cutting. Closest: Arvada and Greeley.

How much can you negotiate in Castle Rock?

For every 100 homes still for sale, 23 are under contract. In 2017–2019 at this time of year it was 36. The rest are still waiting for a buyer. About 1 in 3 sellers has already dropped their price. Each one has learned their first price was too high. Start your offer below their new price.

Castle Rock listings spend a median 72 days on the market. That is 30% longer than a year ago. There are 610 homes for sale in Castle Rock. That is 7.6 times the tightest month on record, but below the peak of 682. Supply is steady against last year.

What to do about it

• Search Castle Rock homes listed 90+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• Ask the seller to pay closing costs.
• You can lose a few offers here and still win.

What numbers should you underwrite a Castle Rock deal with?

• Price growth to assume — +1.8%/yr. Castle Rock grew 4.0% a year over the decade. Ignore that rate. Most of it landed in the 2020 and 2021 boom. Without the boom, Castle Rock grows about 1.8% a year. That is the number to type in. Prices were flat over the last year.
• Months of carrying cost — 3. Budget at least 72 days of holding costs, the current median time on market, when you exit or refinance. That is 30% longer than a year ago.
• Odds you cut your price to sell — 1 in 3. 29% of Castle Rock listings have cut their asking price. Underwrite your exit below asking.
• Comp on price per square foot — $231/sqft. The typical Castle Rock listing shrank from 4,548 to 3,701 sqft since Jul 2016. So median price hides real growth: 54% per sqft versus 18% on the median. Comp on median price and you will overpay for small homes.

Read how population change affects rentals and how we read these numbers, then run the numbers on a deal.

What is the median home price in Castle Rock?

The median asking price in Castle Rock is about $723,000 as of Oct 2026, down 8.2% from a year ago. The typical listing is 3% smaller than a year ago, and asking price per square foot is flat. So the size of homes on the market explains much of the drop. This is the asking price on homes listed for sale. Sites that report sold prices or estimated home values will show a different number. Our Castle Rock figures cover the 3 ZIP codes with a Castle Rock mailing address, which can reach past city limits.

Is Castle Rock a buyer's or seller's market in 2026?

Buyers have more room in Castle Rock than usual. We compare Castle Rock with 2017–2019 at this time of year: there are 23 pending sales per 100 listings, against 36 then; listings spend 38% more days on the market; there are 31% more homes for sale.

Are Castle Rock home prices going up or down?

The median asking price is 26.9% below its Dec 2020 peak. Per square foot the gap is smaller: 9.7% below the Mar 2022 high. Part of the drop is smaller homes coming to market. Prices stopped falling about a year ago. They are flat now. Waiting will not get you a cheaper house. It might still get you a more motivated seller.

What is the best month to buy a house in Castle Rock?

Across 9 full years, Castle Rock asking prices ran lowest in October, about 2.5% below the year's average. They peaked in December. The most homes for sale show up in July, about 25% above the yearly average.

Are there more homes for sale in Castle Rock than before the pandemic?

Yes. There are 610 homes for sale, 31% more than in 2017–2019 at this time of year.

What is the fair market rent in Castle Rock?

HUD's fiscal year 2026 fair market rent for Douglas County is $2,089 a month for 2 bedrooms and $2,734 for 3 bedrooms. The figures include tenant-paid utilities and cover the whole county.