As published in DMAR Market Trends, December 2025

Many first-time buyers are taking a long-term approach, starting to plan now with the intention of purchasing in mid-2026. It’s a strong reminder that it is never too early to begin preparing.

Buyers are enthusiastically touring homes and are eager to purchase the right one. However, the abundance of available inventory is significantly prolonging their decision-making process.

Due to the shift in inventory and the increased length of time homes were taking to sell in 2025, many homeowners “took a break” from selling, removing their homes from the market with plans to return in early 2026. Combined with the traditional increase in inventory at the end of the first quarter each year, this could result in a buyers’ market and a slight cool down in home prices.

Denver is one of the test cities Google is targeting to introduce its MLS-powered home listings directly into search results, creating new competition for Zillow and other real estate portals.

Denver’s minimum wage rises to $19.29 starting in January 2026, making it one of the highest minimum wages in the country.

Economists project Colorado job growth of approximately 0.6% in 2026, with modest GDP gains. While this outlook keeps the state out of recession, it limits overall momentum. For housing, this suggests steady buyer demand rather than a surge, supporting market stability and calmer price appreciation.

Colorado homeowners’ insurance premiums have climbed roughly 137% over the past decade due to heightened hail and wildfire risk, driving up monthly ownership costs. Higher insurance expenses strain affordability, reducing buyer purchasing power and potentially shifting demand toward lower-cost homes or locations.

The Alder, a newly constructed 300-unit multifamily community in the Denver area, has been acquired by global asset management firm Legal & General for $97.2 million from Century Living. The acquisition marks Legal & General’s fourth multifamily purchase in the past 12 months.

Denver City Council unanimously approved Regis University’s plan to rezone a 24-acre parcel adjacent to its North Denver campus, clearing the way for a mixed-use development with buildings up to 95 feet tall. The proposed project includes multifamily housing, office space and retail uses.

While Denver is home to several artist residency programs, none have traditionally included on-site housing, until now. RiNo’s FLORA apartment building is launching a new residency that grants one artist a furnished luxury penthouse overlooking the Platte River, along with dedicated project space, a stipend and built-in collaboration opportunities with Denver creatives. Applications are now open, with the selected artist to be announced in early 2026.

For its 2026 Color of the Year, Pantone chose Cloud Dancer, describing it as “billowy, balanced and ethereal.” The internet, however, collectively scratched its head and responded, “But it’s just white.”

The vast majority of homeowners are still well ahead financially. According to Zillow, only about 4% of homes are worth less than their original purchase price, meaning 96% of homeowners are still in a positive equity position. Nationally, home prices are up nearly 49% over the past five years, with double-digit appreciation across almost every market

Multigenerational homes continue to attract buyers. According to the National Association of Realtors®’ (NAR) November Profile of Home Buyers and Sellers, 14% of buyers purchased a multigenerational home in 2024. The primary reasons cited were caring for aging parents and adult children moving back into their parents’ homes.

House-flipping activity nationwide continues to decline, with 297,885 flips in 2024, down 7.7% from 2023 and 32.4% from 2022.