Denver Home Prices vs. Your Income: Can You Afford to Buy?

Denver is a city on the rise with vibrant neighborhoods, booming job opportunities, and those incredible mountain views. But with its popularity comes a pressing question for anyone hoping to buy: Are Denver home prices out of reach for your income?

What’s Happening With Denver Home Prices?

The Denver housing market has been a wild ride over the past decade. According to an April 2025 market report, Denver’s median home price over the past five years has increased by around 38%, reaching $616,500 compared to just over $445,000 five years ago (Kentwood). This significant growth highlights just how much prices have outpaced income gains for many Denver residents.

If you’re just getting started, our beginner’s guide to Denver neighborhoods will help you compare price ranges and find the right fit.

What About Denver Incomes?

Wages in the metro area have grown, but haven’t kept pace with housing costs. As of 2023 and into early 2025, the median household income in Denver is around $91,700 according to multiple reputable sources (USAFacts, Neilsberg). If you’d like it even more precise, Denver households led by individuals aged 25 to 44 report a median over $104,000, but the citywide average remains just above $91,000 (Neilsberg age data).

With the typical down payment, many buyers find that housing costs take up a large share of their take-home pay, especially with property taxes and insurance added in.

How Much House Can You Buy for Your Income?

Most lenders recommend keeping your total housing costs (mortgage, taxes, insurance) below about 30% of your gross income. On $100,000 a year, that’s roughly $2,500 per month. At today’s interest rates, that typically means qualifying for a home loan of $400,000 to $500,000—less than Denver’s current median.

Debt-to-income ratio is a major factor in how much house you can afford, so crunch your numbers before shopping.

What Can You Do?

Feeling squeezed? You’re not alone. Here are some practical ideas:

• Look a bit farther out: Nearby suburbs and up-and-coming areas can offer better value.
• Explore first-time homebuyer programs: Many local and federal programs help with down payments and closing costs.
• Understand your options: Deciding between an adjustable or fixed-rate mortgage can impact what you qualify for, as can choosing the right mortgage type.
• Get pre-approved: It signals to sellers you’re serious and speeds up your search.

Need extra help? Our team can clarify mortgage basics and help you weigh your options every step of the way.

The Bottom Line

Denver’s market is challenging, but buying a home is still possible with the right preparation. Educate yourself, get your finances in order, and lean on trusted experts.

Want personalized advice? Reach out for a free consultation, or browse our resources on homebuying options.

Your Denver home could be closer than you think.