Denver, Colorado Housing Market

How much can you negotiate in Denver?

Only 28 out of every 100 homes for sale have found a buyer. The other 72 are still waiting. Your offer may be the only one on the table. About 1 in 3 sellers has already dropped their price. Each one has learned their first price was too high. Start below their new price, not their old one.

A typical Denver home takes 51 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago. There are 4,449 homes for sale in Denver. That is 9.2 times the tightest month on record, but below the peak of 4,757. Supply is shrinking against last year.

What to do about it

• Start in 80218, 80226, and 80202. Those are the three softest ZIP codes in Denver.
• Filter for homes listed 60+ days ago that have already cut their price.
• Offer below the reduced price.
• Keep your inspection and financing contingencies.
• In 80218 only 19 out of 100 homes have a buyer. You can lose a few offers there and still win.

Is now a good time to buy in Denver?

Asking prices are 29.0% below their May 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower. Denver prices rose in only 73 of the last 108 months. This market goes up and down. Timing matters here. Growth will not rescue a bad price.

There is no rush. Prices are still coming down. Watch the homes you like. Come back after they cut. Let the seller move first.

Who will rent from you in Denver?

In Denver, 48 out of every 100 households rent. That is nearly half. That share has held steady for five years. 6.1% of homes sit empty. That is normal for a healthy market.

The median Denver household earns $94,837 a year. Incomes here have grown 6.2% a year since 2019. Incomes are rising faster than home prices. Affordability is improving. A typical home costs 5.9 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. A tenant on the median income can pay about $2,371 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast.

What numbers should you underwrite a Denver deal with?

• Price growth to assume — -0.7%/yr. 1 year: -4.5% · 5 years: -0.7% · ten years: +3.5%. Do not use the ten-year rate. Most of that growth landed in the 2020 and 2021 boom. The five-year rate is what Denver does without one. Underwrite closer to -0.7%. Measure growth per square foot. Denver median list price grew 0.9% a year, but price per square foot grew 3.5%. The gap is smaller homes, not weaker growth. The house you buy will not shrink. The one-year rate is a timing signal. It is not an underwriting input.
• Months of carrying cost — 2. A typical home takes 51 days to sell. Budget that long when you exit or refinance.
• Odds you cut your price to sell — 1 in 3. About 30% of homes on the Denver market right now have already cut their asking price. Assume you are one of them when you sell. Do not underwrite an exit at your asking price.
• Comp on this, not median price — $353/sqft. The typical Denver listing shrank from 2,185 to 1,594 sqft since Jul 2016. So median price hides real growth: 41% per sqft versus 9% on the median. Comp on median price and you will overpay for small homes.
• Competition when you exit — -6%. That is how much the number of homes for sale shrank in a year. Your resale will face a smaller crowd than today's comps did.
• Price-to-income ratio — 5.9×. A typical home costs 5.9 times the median income. Most locals cannot buy. That keeps rental demand deep. It also caps the rent they can pay. Incomes are rising faster than home prices. Affordability is improving.
• Tenant rent ceiling — $2,371/mo. 30% of the median household income of $94,837. Rents above this line shrink your tenant pool fast.

Is Denver a buyer's or seller's market in 2026?

Yes, if you negotiate. Buyers have the upper hand in Denver right now. 0.28 out of every 100 homes for sale have a buyer, 30% of sellers have cut their price, and a typical home takes 51 days to sell.

Are Denver home prices going up or down?

Asking prices are 29.0% below their May 2023 peak. You are not buying at the top. Prices are still falling. Waiting has paid off so far. Let listings age, then come back lower.

What price growth should I assume for Denver?

-0.7%/yr. 1 year: -4.5% · 5 years: -0.7% · ten years: +3.5%. Do not use the ten-year rate. Most of that growth landed in the 2020 and 2021 boom. The five-year rate is what Denver does without one. Underwrite closer to -0.7%. Measure growth per square foot. Denver median list price grew 0.9% a year, but price per square foot grew 3.5%. The gap is smaller homes, not weaker growth. The house you buy will not shrink. The one-year rate is a timing signal. It is not an underwriting input.

How fast are homes selling in Denver?

A typical Denver home takes 51 days to find a buyer. Half of them take even longer. Those sellers are paying to own a house they want to sell. Search for homes listed 60+ days ago.

Is Denver a renters' market or an owners' market?

In Denver, 48 out of every 100 households rent. That is nearly half. That share has held steady for five years. 6.1% of homes sit empty. That is normal for a healthy market.

What rent can Denver tenants afford?

A tenant on the median income can pay about $2,371 a month. That is the standard 30% affordability line. Rents above it thin your tenant pool fast. The median Denver household earns $94,837 a year.

Which Denver ZIP code has the most negotiating room?

80218. Only 19 out of 100 homes there have a buyer, 42% have cut their price, and a typical home takes 65 days to sell.