Denver on Track to Become Unaffordable by 2028, According to Real Estate Experts
As home prices continue to rise faster than local wages, several real estate professionals warn that Denver may soon join the ranks of America’s most unaffordable cities — possibly as soon as 2028. Financial planners and real estate analysts say that anyone planning to live or buy in the Denver metro area over the next few years should begin preparing now, as household budgets are likely to face stronger pressure from housing, insurance, and cost-of-living increases.
According to Denver broker Emily Duke with LUX Real Estate ERA Powered, the city’s rapid growth, lifestyle appeal, outdoor access, and booming job market have created a competitive housing environment that shows no signs of slowing. With a current median home price of approximately $536,000, Denver homes now cost about 6.4 times the local median income, placing the city well above ideal affordability standards, where home prices are generally recommended to stay within three times annual income.
While price appreciation has slightly cooled compared to the explosive post-pandemic market, Duke notes that housing costs remain elevated due to limited inventory, strong demand from out-of-state buyers, and rising construction and material prices. Even buyers who can afford their mortgage are hit with additional costs that often get overlooked — particularly homeowners insurance, which has become a major financial hurdle in Colorado. The average premium in the state is now $3,017 per year, roughly 38% higher than the national average, due mostly to wildfire risk, hail damage claims, and rebuilding expenses.
Experts say Denver is likely to see continued population growth, increased interest from remote-work professionals, and expanding corporate development — all factors that push demand upward. Unless wages catch up, inventory expands, or insurance rates stabilize, analysts believe that Denver could cross the threshold into “highly unaffordable” territory by 2028, putting first-time buyers, teachers, service-industry workers, young professionals, and many middle-class families at risk of being priced out of the market entirely.
Economists recommend that residents begin planning early through savings strategies, credit management, and researching down-payment or first-time-buyer assistance programs. Renting is also expected to become more competitive as priced-out buyers shift into long-term lease options. For now, Denver remains one of the most desirable places to live in the Mountain West, but experts warn that without intervention, the dream of owning a home in the Mile High City could soon become out of reach for many.
