Were you surprised by the higher prices while looking for properties near downtown Denver?

The median home price in Denver is estimated to be around $600,000 by 2026.

After the influx of people moving to the western Rocky Mountains, prices have steadily increased and are now showing signs of stabilization.

This is certainly a lot to consider. Let me walk you through the calculations step by step.

If you put 20% down on a $600,000 home, that's $120,000, leaving a loan principal of $480,000.

With a 30-year fixed mortgage at an interest rate of 6.75%, the principal and interest payment would be $3,113 per month.

Adding property taxes (assuming an annual rate of 0.55%, as Colorado has a relatively low property tax rate) of $275 per month and insurance of $158 per month, the total monthly housing cost comes to about $3,547. This seems relatively manageable compared to other major cities in the West.

Using the DTI 28% rule, the required monthly income would be $12,666, which translates to an annual income of $151,997. This is roughly around $152,000. For a dual-income professional household, this seems like an achievable goal.

The median household income in Denver County is estimated to be around $85,000 based on the 2024 census. Compared to the required annual income of $152,000, the gap is about 1.8 times. Compared to major cities in California, this gap is much narrower, which is one reason Denver is considered a relatively accessible market.

When comparing to nearby cities, there are various options. Boulder is significantly more expensive than Denver, while moving towards Aurora or Colorado Springs tends to lower prices considerably. If you want to maintain some accessibility to downtown Denver while sticking to a budget, areas like Aurora could be a realistic alternative.

If you are a dual-income Korean household, earning between $75,000 and $80,000 each could bring you close to the $150,000 target. This income level is quite common among dual-income professional households in the Denver area. Increasing the down payment a bit or utilizing first-time homebuyer assistance programs could also be practical help, so I recommend looking into those options.

For actual property prices, check the latest information on Zillow and Redfin, and I recommend recalculating your monthly payments using the Bankrate mortgage calculator based on your credit score.