DENVER ( KDVR ) — Housing markets across the U.S. are facing some of the most turbulent times in decades, with homeownership being pushed further out of reach for many in the five years since the COVID-19 pandemic began .
Colorado’s housing market is no different; real estate service Redfin reports the median home price in the Centennial State went up nearly $200,000 between February 2020 and February 2025. With that sale price increase, as well as mortgage rate increases over the past five years and myriad other factors, the income needed to afford a home in Colorado has also gone up significantly since 2020.
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On Monday, personal finance site Bankrate released a housing affordability study detailing incomes required to afford homes across the U.S. as of January 2025 and compared those incomes to the needs of five years ago. Colorado’s income needs for a typical home are higher than the national average and are ranked among the highest in the country.
Here’s how the Centennial State compares to the rest of the country.
Colorado among top 5 states requiring most income for a home
Americans, on average, need an annual household income of $116,986 to afford a typical home valued at $418,489 as of January 2025, according to Bankrate. This is a nearly 50% increase from January 2020…