Denver Housing Inventory Up 48.5% Year-Over-Year in May 2025

Denver’s housing market looks different this year. There are 48.5% more homes for sale compared to last summer. Even with all these new listings, prices haven’t crashed. The median sale price is $615,000, just a little lower than a year ago.

I’ve been in Denver real estate for years, and here’s what I’m seeing:

• Buyers have more choices and less pressure
• Sellers need to price homes realistically to get them sold
• Homes take longer to sell than before
• Renters are seeing lower rents for the first time in years

If you want to know what’s really happening, and what to expect next, here’s a quick, clear look at the numbers and trends.

The Market Is Calmer, But Still Strong

Denver’s housing market isn’t as wild as it was during the pandemic. Back then, buyers raced to make offers, and homes disappeared in days. Now, things have slowed down, but the local economy is still strong and people keep moving to Denver.

A few big reasons for the shift:

• Mortgage rates are higher, around 6.86% for a 30-year loan. That means higher monthly payments.
• Denver’s population keeps growing. The U.S. Census Bureau says Denver County grew about 1.5% in the last year.
• Good jobs are still drawing people here, especially in tech, healthcare, and finance.

Even with steady demand, it’s tougher for first-time buyers because rates and prices are both high. But with more homes to pick from, buyers can be picky and negotiate. Sellers, on the other hand, can’t expect bidding wars for every house.

Prices Are Holding, But Fewer Homes Are Selling

Home prices in Denver aren’t jumping anymore. They’re steady, maybe even down a bit. According to Redfin, the median sale price was $615,000 in May 2025, down less than 1% from last year. Zillow shows a typical home value around $558,700, which is down about 3.6% year-over-year.

Different types of homes are seeing different trends:

• Single-family homes are up about 2% compared to last year.
• Condos and townhomes are down about 2%.

Sales have slowed down. Rocket Homes says only 931 homes sold in Denver city in May, fewer than before.

Sellers are accepting offers below asking more often. The average sale-to-list price is now 98.9% (REcolorado). About half of all homes now sell for less than the list price.

More Choices, More Time

This year, Denver has a lot more homes on the market. In May 2025, the number of active listings jumped nearly 48.5% compared to last year. REcolorado says there were over 10,000 homes for sale in April, almost double the usual amount for spring.

With so many homes to choose from, buyers don’t need to rush. The median days on market is now about 14 days, up from just 9 days last year. Two weeks is still quick, but it’s a clear sign that things have cooled off.

Sellers are more willing to cut their prices if homes sit too long. Redfin reports about 19% of listings nationally had price drops in May 2025, and some Denver suburbs are seeing even more cuts.

Key stats:

• Active listings: over 10,000 (REcolorado)
• Median days on market: 14 (REcolorado)
• Listings with price cuts: 19%+ (Redfin)

More homes for sale and longer market times mean buyers can shop around, negotiate, and think before making an offer.

Rents Down, Vacancies Up

After years of rising rents, Denver’s rental market is cooling. For the first time in over a decade, apartment rents are down. The median rent in Denver is now about $1,733 a month, which is 3.6% lower than last year.

Why are rents dropping? It’s simple, lots of new apartments have opened. About 20,000 new multifamily units were added to the market in the last year, and the vacancy rate jumped above 7%, the highest since 2009. This means landlords are now competing for tenants and often offer move-in deals or cut rent to fill units.

Single-family rentals are following the same trend. Zillow’s forecast expects single-family rent prices to go up only about 2.8% in 2025, much slower than before.

Quick facts:

• Median rent: $1,733/month (Apartment List)
• New apartments added: ~20,000 units (Denverite)
• Vacancy rate: over 7% (Denverite)
• Single-family rent forecast: +2.8% (Zillow)

It’s a better time to be a renter in Denver. Landlords are working harder to attract tenants, and rent hikes have slowed way down.

What’s Next for Denver’s Housing Market?

Experts don’t expect wild swings for the rest of 2025. Instead, the Denver market will likely stay balanced, with maybe a slight dip in prices or even a small rebound by 2026.

Some are predicting a minor correction. Nick Gerli at Reventure Consulting thinks Denver home prices could drop up to 9% in the next year, mostly because there are so many homes for sale.

Other forecasters see things staying steady or even improving a bit:

• Zillow expects home values nationwide to drop about 1.4% in 2025, with Denver likely following a similar path.
• Fannie Mae predicts home prices might rise about 4% in 2025, especially if mortgage rates fall a bit.

Denver’s economy is strong. Even if we see a small price drop, the long-term outlook is solid. If you’re patient and ready, there could be good buying opportunities in the next year.

Most likely, Denver will stay steady, with small ups and downs, not a major crash or boom.

Advice for Buyers, Sellers, and First-Timers

For Buyers

Now’s a good time to shop. There are more homes for sale and less pressure to make snap decisions. With prices steady and sellers more open to negotiations, you can take your time and try to get a better deal. Keep an eye on mortgage rates, even a small drop could help you save money each month.

For Sellers

You can still sell for a good price, but you need to be realistic. Price your home based on what’s selling right now, not last year’s market. The best-looking, best-priced homes still sell quickly. It also helps to offer incentives like help with closing costs or a mortgage rate buydown. Check recent sales to see where you should price your home.

For First-Time Buyers

This market is easier for first-timers. Fewer bidding wars mean more time to think. Make sure your finances are in order, get pre-approved, and look for first-time buyer programs. Condos and townhomes are a good option right now since their prices have dropped a bit (see the latest stats).

Just Ask Jordan

Got questions about the Denver housing market? You’re not alone. Here are answers to the things I hear most from buyers, sellers, and renters every week.