Home Values in Denver Fall Fastest Across Country

Denver’s long-running housing cooldown just hit a new depth.

Home values in the Mile High City fell 2.2 percent year over year in February, representing the sharpest decline among major U.S. metros, Realtor.com reported, citing the S&P CoreLogic Case-Shiller Index. The drop outpaced other softening markets like Tampa, Seattle and Phoenix, and stands in stark contrast to the national average, which rose 0.7 percent over the same period.

The data underscores how quickly Denver has shifted from a pandemic-era darling to one of the country’s weakest-performing housing markets. The slide reflects both local pressures and a broader cooling trend that began in the Sun Belt and is now bleeding into adjacent regions, according to S&P experts cited by Realtor.com.

Colorado’s housing troubles have been building for more than a year. Prices are elevated compared to many inland markets, yet momentum has clearly reversed. Agents and analysts point to a surge in inventory, rising insurance costs and a sharp pullback in demand for condominiums and townhomes — large portions of the Denver market — as key drivers behind the downturn, Westword reported. Condo values have lagged behind single-family homes, while an influx of new listings has given buyers more leverage after years of constrained supply. At the same time, higher costs, especially property insurance, are reshaping affordability calculations and sidelining some would-be buyers.

The market reversal highlights a broader recalibration across once high-flying secondary markets. Several pandemic boomtowns are now working through excess supply and demand fatigue, according to Westword.

The Northeast and Midwest were the strongest markets while Denver’s values tumbled. Chicago led the pack among major U.S. metro areas with 5 percent annual growth, followed by New York with 4.7 percent and Cleveland with 4.2 percent.

— Chris Malone Méndez