Home Ownership Trends in Colorado

Home ownership has long been considered the American Dream, symbolizing stability, prosperity, and success. But how does Colorado, and more specifically the Denver metro area, compare to national trends when it comes to home ownership rates?

According to the U.S. Census Bureau, the national home ownership rate was estimated to be 65.6% for Q1, Q2, and Q3 in 2024. In contrast, Colorado’s home ownership rate outpaced the national average, standing at 66.6% in Q1, 67.3% in Q2, and 67.8% in Q3. The Denver-Aurora market, however, reported slightly lower home ownership rates, at 63.9% in Q1, 64.1% in Q2, and 64.8% in Q3. For comparison, in Q1 2014, Colorado’s rate was 65.1%, and the Denver-Aurora area had a rate of 63.6%.

In the Denver-Aurora market, the highest home ownership rate was recorded in Q1 2023, reaching an estimated 69.7%. This peak occurred shortly after the area experienced a significant real estate boom, particularly between May and July 2022. Similarly, statewide home ownership in Colorado peaked in Q2 2023 at 70.2%, while the national rate hit its highest point in Q2 2020 at 67.9%, following the pandemic-driven surge in demand.

Since the peak, national home ownership rates have stabilized at approximately 65.7% since Q4 2020. Interestingly, both Colorado and Denver-Aurora’s rates were consistently above the national average from Q4 2022 to Q3 2023 before dipping slightly below the national rates in Q3 2023.

Colorado’s national ranking in terms of home ownership rates has also improved. As of Q3 2024, Colorado ranked #28, up six spots from its position as #34 in Q4 2023. In comparison, the District of Columbia reported the lowest home ownership rate at 39.1%, while Mississippi led the list with a robust 78.8%.

At the metropolitan level, the Denver-Aurora market ranks #44 out of the top 75 metropolitan statistical areas (MSAs) by home ownership rate for Q3 2024. The San Jose-Sunnyvale-Santa Clara, CA market recorded the lowest home ownership rate at 48.0%, while the Cape Coral-Fort Myers, FL area led the pack with a home ownership rate of 78.2%.

What’s Driving These Trends?

These fluctuating home ownership rates reflect broader economic and housing market trends. Affordability remains a key issue in Colorado’s urban areas, where skyrocketing home prices and a competitive real estate market make it challenging for many residents, particularly first-time home buyers, to secure a property. Additionally, remote work has reshaped how people approach housing, with some opting to move to suburban areas or other regions for more affordable options.

As we look ahead, it will be interesting to see if home ownership rates continue to trend downward in the face of economic pressures like inflation, interest rates, insurance costs and housing inventory challenges. For appraisers, staying on top of these changing dynamics is critical to providing accurate property assessments and understanding how fluctuations in ownership impact the market.