Feeling priced out of homeownership in 2025?
Colorado’s mix of scenic mountains, thriving metros, and small-town gems makes it one of the most attractive states to live in. But here’s the catch: buying in Colorado now requires higher incomes, careful market timing, and attention to hidden costs like insurance and taxes.
This guide breaks down:
- Income needed to buy in Colorado today
- Affordable metros vs. hidden small-town opportunities
- Safety concerns and crime trends buyers overlook
- Cooling market trends giving buyers more leverage
- Ongoing costs: property taxes and insurance in 2025
- Safest and smartest places to buy now
Whether you’re a first-time buyer, investor, or relocating professional, this snapshot gives you a clear sense of what to expect in 2025.
Colorado Affordability: What Income Do You Need?
Colorado is now the 5th most expensive state to buy a home in 2025.
- Required Income: $168,643 per year to afford the median home. That’s a 68% increase in 5 years (from $100,000 in 2020).
- Median Home Price: $581,600 (April 2025).
Bottom Line: The average buyer now needs a six-figure income. For many, affordability depends on looking beyond Denver and Boulder.
Affordable Housing Options in Colorado
If the state median price feels out of reach, buyers have two paths:
1. Affordable Metro Cities (Under $581,600)
These larger cities offer below-average home prices, often near Denver or Colorado Springs.
Affordable Metro Cities Snapshot (2025)
|
Rank
|
City |
Median Home Price
|
Nearest Major Metro
|
|---|---|---|---|
|
#1
|
Pueblo
|
$265,000
|
Colorado Springs (45 mi)
|
|
#2
|
Grand Junction
|
$405,900
|
N/A
|
|
#3
|
Colorado Springs
|
$459,000
|
Denver (70 mi)
|
|
#4
|
Greeley |
$462,175
|
Fort Collins (35 mi)
|
|
#5
|
Aurora |
$463,390
|
Denver (10 mi)
|
|
#7
|
Commerce City
|
$500,000
|
Denver (7 mi)
|
|
#11
|
Lakewood
|
$562,500
|
Denver (8 mi) |
Takeaway: Pueblo is Colorado’s affordability anchor with prices less than half the state average. Aurora and Lakewood offer “near-Denver” value buys.
2. Extremely Affordable Rural Towns (Under $150K)
Colorado’s eastern plains and southern regions offer entry-level prices and strong appreciation potential.
- Example: Las Animas homes average $95,983-under 20% of the state’s median.
- Appreciation:
- The 25 cheapest towns saw 144%+ growth since 2010.
- Manzanola: +187.6% (2010-2025).
- Fowler: +186.4%.
- Kit Carson: +118.3% in just 5 years.
Takeaway: Rural towns = ultra-low buy-in with surprising equity growth. Great for early investors and budget-conscious buyers.
Market Trends: 2025 Cooling Front Range
Colorado’s Front Range (Denver, Colorado Springs, Fort Collins) is shifting to a buyer’s market.
- Denver: More price cuts than any other US metro in June 2025.
- Average Sale Time: Now 27 days, up from 11 days in 2022.
- Price Drops: Forecasted 3-4% decline by year-end.
- Pueblo: Already down 7% year-over-year, homes take ~90 days to sell.
- Renting vs. Buying: Renting often saves $500–$1,000 monthly compared to mortgages.
Takeaway: If you’re flexible, waiting or renting short-term could mean big buying power later in 2025.
Safety and Crime Concerns in Colorado
Colorado ranks higher in crime compared to the US average.
Key Stats (2013-2022):
- Violent crime up 61% (US up only 3%).
- Property crime up 19% (US down 29%).
- Motor Vehicle Theft up 231%-nearly 3x the national rate.
Buyer Concerns:
- 65% worry about property crime.
- 62% worry about package theft.
Safest Cities in Colorado (2025)
Gypsum, Milliken, Windsor, Severance, Frederick, Fruita, Erie, Castle Rock, Woodland Park, Eagle.
- All reported fewer than 0.6 violent crimes per 1,000 residents.
- Four reported zero murders, rapes, and robberies.
Takeaway: If safety is a priority, stick to smaller towns and suburbs outside the Denver metro core.
Ongoing Costs: Taxes and Insurance
Homeownership in Colorado comes with rising recurring costs.
Property Taxes (2025 Update)
- Assessment Method: Market approach only.
- New Assessment Rates:
- 6.25% for local government.
- 7.05% for school districts.
- Appeals: Buyers can challenge property valuations between May 1–June 8.
Homeowners Insurance
- Colorado Rank: 6th costliest state.
- Average Premium: $4,072 (for $300K coverage).
- Wildfire Risk: 321,000+ homes at moderate-to-high risk.
- Underinsurance Problem: 74% underinsured after 2021 Marshall Fire.
- FAIR Plan: State-backed last-resort coverage, often more expensive.
Takeaway: Buyers must budget for taxes + insurance, which often add thousands per year.
Renting vs Buying in Colorado 2025
Renting makes sense if:
- You want to save $500–$1,000 per month.
- You’re waiting for Front Range prices to drop further.
- You’re new to Colorado and still exploring.
Buying makes sense if:
- You’re looking in affordable metros like Pueblo or Grand Junction.
- You’re considering rural towns with high long-term appreciation.
- You’re ready to hold for 5+ years.
Smart Buyer Takeaways
- Colorado’s average buyer needs $168K income.
- Pueblo, Grand Junction, and Aurora remain top “value metros.”
- Rural towns under $100K are rare equity plays.
- The Front Range is cooling-2025 buyers gain leverage.
- Factor in crime, insurance, and taxes before deciding.
FAQs: Colorado Housing Market 2025
What is the cheapest city to buy a home in Colorado?
Pueblo is the cheapest metro at $265K. Las Animas is one of the cheapest rural towns at under $100K.
Is Colorado still affordable?
Yes, but mostly outside Denver/Boulder. Pueblo, Greeley, and rural towns are budget-friendly.
Will Colorado housing prices drop in 2025?
Yes, especially in the Front Range. Expect a 3-4% dip in Denver by year-end.
What are the safest cities in Colorado to live?
Gypsum, Windsor, and Castle Rock rank among the safest in 2025.
How expensive is Colorado homeowners insurance?
Very high-averaging $4,072 annually, driven by wildfire risk.
What’s better: renting or buying in Colorado right now?
Renting saves more monthly in metros, but buying in rural towns offers better long-term value.
Where do homes appreciate fastest in Colorado?
Smaller towns like Kit Carson, Manzanola, and Fowler saw 100%+ appreciation since 2010.
Final Word
Colorado’s housing market in 2025 is full of contrasts. Buyers face steep income requirements and rising insurance bills, but affordable metros and rural towns still offer entry points.
If you’re planning a move, balance affordability, safety, and long-term costs. Look past Denver and Boulder-Colorado’s real value often lies in its overlooked towns.