Is It Affordable to Live in Denver, CO?

The Short Answer

For most people, no. With an affordability score of just 32 out of 100, Denver is in a housing affordability crisis. The median home price of $560K requires an annual income of about $161K to buy comfortably — well above what most residents earn.

Housing Costs vs. National Average

Home prices in Denver are 37% above the national median of $410K. Rent is 20% above the national median of $1,500/month.

The price-to-income ratio in Denver is 7.2x, meaning the median home costs 7.2 times the median household income. Financial experts generally consider anything above 5x to be unaffordable.

Income You Need

To comfortably purchase the median home in Denver (spending no more than 28% of gross income on housing), you'd need an annual household income of approximately $161K. The median household income in Denver is $78K — a gap of $83K.

For renters, you'd need about $72K per year to keep rent at or below 30% of income. Currently, 31.0% of renters are cost-burdened (spending more than 30% on rent).

Market Trends

Home prices changed by 2.0% year-over-year, while rents shifted by 1.5%. Price growth is moderate.

Similar Cities to Compare

These cities have similar affordability profiles to Denver: