We’ve all felt it for a while now: that increased pressure when it comes to the cost of living here in Colorado. With rising home prices and increased interest rates, buying a home has stretched further out of reach for many. And the increase in rental rates hasn’t alleviated that burden much either. While rates have slowed and decreased slightly over the last 2 years, affordability remains a struggle for many. Studies currently show that buyers and renters are struggling with affordability issues when it comes to housing, with many indicating they’re cost burdened, or pay more than 30% of their income towards housing. But just how much do Coloradans have to make to afford a home in Denver these days? According to reports, a lot more than many other metros across the country.
A Rise in Costs
According to Zillow and Redfin, the average home value in Denver is between $530,000-550,000 as of early 2026. While prices have cooled slightly—declining about 1.65% year-over-year—homeownership remains expensive due to elevated borrowing costs and overall housing demand.
Mortgage rates have improved compared to their peak in recent years but remain historically high compared to the pandemic era. As of early 2026, the average 30-year fixed mortgage rate is around 5.98%, according to Freddie Mac.
Even with modest price corrections, affordability remains a major challenge. With the average home value still above $530,000 according to Zillow, buyers purchasing a typical Denver home with a 20% down payment would still likely need a household income well into the six-figure range—roughly $120,000 to $140,000 annually depending on loan terms and debt levels—to qualify comfortably.
How Much Is Needed To Afford a Home in Denver
Unfortunately, while most Coloradans earn higher than the national average, many still fall short of the needed salary to make the current housing market affordable. The median income currently for Denver households stands at about $92,500/year, falling short of the $120,000-$140,000 needed to afford the average home price. This creates a substantial affordability gap in the Mile High City. In fact, according to a study from Clever Real Estate, Denver had the 8th largest income-to-median-priced-home price gap across the nation. This highlights the affordability crisis.
This creates a substantial affordability gap between what residents earn and what is needed to buy a home. With roughly $155,700 required to afford a median-priced home, the typical Denver household earns over $60,000 less than what would be needed to comfortably enter the housing market.
The widening gap between wages and housing costs has been one of the defining trends in Denver’s housing market over the past decade. As home prices accelerated during the 2010s and early 2020s, incomes have struggled to keep pace, leaving many potential buyers priced out of the market or forced to move further from the city center.
Renters have also faced affordability challenges, though rental costs have stabilized somewhat in recent years as new apartment construction increased supply. Despite slight easing in rents, housing costs continue to consume a significant portion of income for many households, reinforcing Denver’s broader affordability challenges.
Renting Remains the Affordable Option For Now
Currently, the typical monthly payment for buyers of median-priced homes is about $3,300+. This includes insurance, taxes, and mortgage payments. By comparison, the average rent in Denver according to Zillow stands around $1946, which pulls in a combination of apartment, condo, and single-family home rentals. However, with the rise in economic costs and lack of pace for income growth, many renters still pay more than 30% of their monthly income towards rent.
Housing is a need that isn’t ever going away and Colorado continues to be a hot spot for many looking to make a move. The choice to buy or rent a home comes with a lot of considerations, including financial, lifestyle, and personal preference. And while affordability continues to apply pressure in many aspects of our lives, we will continue to be a resource to both renters and property owners alike. Contact us about our available rentals and our property management services for more information.
