Front Range Real Estate Market Update, February 12, 2026

A median-income household buying a median-priced home in Metro Denver would spend 45% of monthly income on housing—well above the recommended 28-30% threshold that financial experts consider sustainable.

According to Denver-Aurora-Lakewood MSA data, median household income stands at $102,339 annually, or $8,528 monthly—roughly 1.3 times the national median. Yet housing in Metro Denver feels unaffordable for many residents, and the numbers confirm why.

Last month, the median home price in our area was $569,500—down from $575,000 in January 2025. For a household earning the median income, purchasing that median-priced home requires significant financial strain.

With a 30-year fixed mortgage at today’s typical rate of 6.14%, a 5% down payment, mortgage insurance, property taxes and homeowners insurance (no HOA), the monthly payment would be $3,934. That represents 45% of monthly income for a median-earning household—far exceeding conventional affordability guidelines and putting the median-priced home out of reach for many families at or below median income levels.

A larger down payment would reduce monthly costs, but coming up with 5%—more than $28,000—represents roughly 27% of median annual income, a barrier that requires years of disciplined saving.

Has Affordability Improved?

The situation has shifted modestly over the past two years. In January 2023, median household income was approximately $91,681 ($7,640 monthly) and the median sold home price was $554,990. With mortgage rates at 6.8%, the monthly payment was approximately $4,002—consuming 52% of monthly income.

While the affordability ratio has dropped 7 percentage points since January 2023—driven primarily by 66 basis points of rate relief and income growth outpacing home price increases—the median home remains deeply unaffordable by traditional standards. The modest improvement tells only part of the story.

Monthly payments have decreased by roughly $70 despite slightly higher home prices, but the 45% income-to-housing ratio still exceeds conventional guidelines by a significant margin.

This means half of all households earn less than what’s needed to comfortably afford half of all homes on the market.

This affordability constraint helps explain market behaviors: buyer hesitation, slower transaction volumes, and the growing expired listing phenomenon as sellers refuse to accept the market-clearing prices that would make homes accessible to typical buyers. Until this ratio approaches more sustainable levels—either through meaningful price corrections, income growth, or further rate declines—affordability pressures will continue limiting transaction activity and shaping the Metro Denver market.