Between 2018 and 2023, Colorados housing market flipped more than once.
The pandemic drove buyers into the mountains and onto the plains, chasing space, quiet, and affordability.
Low interest rates (near 3% in 20202021) significantly increased buyer purchasing power.
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Home sales reached record highs in 2020, with Denver-area sales 24% higher in 2020 compared to 2019.
Mountain resort counties experienced even more dramatic growth.
Pitkin County (Aspen) home sales jumped 458% in September 2020 compared to the previous year.
This rush was fueled by remote work opportunities and buyers seeking more space during COVID-19.
Inventory of homes for sale began to recover from record lows.
Denver and its suburbs experienced sharp price increases and critically low supply.
By early 2022, finding any single-family home under $400,000 in the Denver area was nearly impossible.
Homes often sold within days, frequently above asking price due to intense bidding wars.
Price growth also moderated significantly.
Condo sales in the city increased as an affordable alternative.
Colorado Springs
Colorados second-largest city experienced similar trends.
Home prices in Colorado Springs (El Paso County) rose approximately 119% from 2013 to 2023.
This attracted buyers seeking more house for the money while accepting longer commutes.
From 2013 to 2023, home prices in Mesa County more than doubled (+113%).
Even with this growth, Grand Junction remained relatively affordable by Colorado standards, attracting budget-conscious buyers.
However, 20202021 brought a surprising uptick in some rural populations.
State demographers noted this telework migration helped offset natural population declines in rural counties.
Remote work enabled a trickle of new homebuyers into rural Colorado who previously wouldnt have considered living there.
After initial pandemic lockdowns, wealthy urban buyers from Denver and out-of-state flooded into mountain areas.
After 2021, as travel resumed and offices reopened, the mountain frenzy moderated.
Statewide, land acquisitions skyrocketed as people planned to build homes instead of continuing unsuccessful searches for existing properties.
Finding contractors, however, proved equally challenging.
Changing Homebuyer Preferences
Upsizing Trends
A clear pattern in 20182023 was buyers seekingmore space.
First-time buyers in 20182021 were often millennials finally entering the market, moving from apartments to starter homes.
Downsizing Realities
While upsizing was prevalent, downsizing occurred more gradually than expected.
However, the anticipated silver tsunami of boomer sales did not fully materialize in the late 2010s.
Compared to 20082017, more boomers in 20182023 chose to age in place.
Downsizing in Colorado became less financially advantageous when even smaller condos or patio homes commanded high prices.
Others moved into new senior-friendly developments in suburbs that offered reduced maintenance while remaining near family.
Second Homes and Vacation Properties
The second-home market flourished during this period.
Nationally, vacation home sales jumped 16.4% in 2020, significantly outpacing overall home sales growth.
By early 2021, vacation/second-home purchases were up 57% year-over-year.
Others purchased second homes as both retreats and contingency plans against future lockdowns.
Demographic Influences
Age of Buyers
The typical Colorado homebuyer grew older during this period.
Colorado likely mirrored this aging trend.
Young adults postponed homeownership longer, often due to pricing challenges and debt burden.
Most buyers in 20182021 were in their 30s (older millennials purchasing first homes).
The proportion of very young buyers (20s) declined, while middle-aged and older buyers dominated the market.
Single men represented roughly 810%, with unmarried couples at approximately 6%.
This indicates evolving household compositions, with more individuals (especially women) purchasing independently.
Colorado also experienced growth in multigenerational households buying together.
Income and Affordability
Colorados robust economy attracted numerous professionals, but housing costs outpaced income growth.
This affordability gap skewed the buyer pool toward higher earners.
First-time buyers faced substantial obstacles.
Younger and lower-income buyers were increasingly excluded by competition and rising interest rates.
Those who succeeded often had above-average incomes or family assistance with down payments.
Repeat buyers (with equity from existing homes) held a significant advantage.
Remote Work Revolution
Remote work fundamentally transformed Colorados homebuying landscape.
Before 2020, only a small percentage of Coloradans worked from home full-time.
By 20212022, Colorado had one of the highest remote-work rates nationally.
This shift meant many professionals were no longer tied to offices in urban centers.
Workers could purchase homes anywhere in Colorado (or beyond) while maintaining their employment.
Even within cities, buyers sought more space to accommodate work-from-home requirements.
By 2023, some employers began recalling workers to offices, potentially slowing remote-work migration.
In stark contrast, 20182021 represented boom years with record-high prices and sales.
The late 2010s featured a strong economy and population growth, driving demand upward.
Price Growth Acceleration
The pace of price increase accelerated significantly in 20182023.
Changing Buyer Demographics
The buyer composition shifted older and more affluent.
In the late 2000s, Generation X dominated prime homebuying years with many first-time purchasers in their 20s.
The median first-buyer age increased to the mid-30s by 2023, compared to around 30 a decade earlier.
Baby boomers in 20082017 began retiring, with some selling homes to downsize or relocate to warmer states.
Front Range technology and energy sector growth attracted numerous newcomers.
In 20182023, this trend began reversing.
Migration slowed considerably, and by 2022 Colorado had net outbound migration (more departures than arrivals).
Contributing factors included prohibitive housing costs and remote workers relocating to more affordable regions.
Internally, the pandemic triggered unusual micro-movements (urban to rural, as discussed).
Overall, the states reputation as a population magnet diminished compared to the previous decades robust growth.
Financing methods also evolved after 2010, fixed-rate mortgages and stringent underwriting became standard practice.
This contrasted sharply with mid-2000s practices when leverage was readily available and zero-down financing was widespread.
