Buying a home in Colorado has always promised a blend of natural beauty and vibrant city life—but for first-time homebuyers, affordability is now a pressing challenge.
With mortgage rates still hovering around 7% and home prices on a steady climb, securing that first home requires taking careful stock of your finances, in particular your salary.
But the good news is, if you’re looking for a starter home, you don’t need to be bringing in six-figures to land a house.
What It Takes To Buy a Starter Home in Colorado
In 2024, the average price of a starter home in Colorado reached $398,430. To comfortably afford this, assuming a 10% down payment and a 7% mortgage rate, households need an annual income of $95,370. This figure is notably above the national average salary requirement of $70,164 for similar homes, placing Colorado among the pricier states for first-time buyers.
However,, the Centennial State continues to attract buyers, despite a five-year home price growth of 39%. Those eager to settle down somewhere with a strong job market and an unique array of lifestyles are still flocking to Colorado in droves.
So, if your salary has the stretch, understanding the steps to buying a house and exploring mortgages for first-time homebuyers are the next steps to navigating this competitive market. And then, you haven to know where to start looking.
Best and Worst Cities in Colorado for Starter Homes
Colorado’s real estate market is highly localized, with some cities offering far more affordability than others:
Most affordable cities:
- Pueblo – With a median starter home price around $270,000, this city offers budget-conscious buyers a feasible entry into home ownership.
- Greeley – Offering proximity to Denver without Denver prices, starter homes here average about $310,000.
- Grand Junction – Known for scenic views and a slower pace, homes here typically go for around $325,000.
Least affordable cities:
- Boulder – Median home price exceeds $700,000, driven by limited inventory and high demand.
- Aspen – Luxury dominates here, with starter homes virtually nonexistent under $1.5 million.
- Vail – Another high-end market where second-home buyers push starter home prices beyond reach.
Is Buying a Starter Home in Colorado Still Worth It?
For aspiring homeowners chasing a life surrounded by natural beauty, the investment in Colorado still makes sense—if done strategically.
Despite higher upfront costs, those who bought five years ago have seen substantial equity gains, especially in areas like Greeley or Pueblo.
That’s why Colorado received a B grade on the 2025 Realtor.com®state housing report card. It performs relatively well in affordability compared to other Western states, though limited new home construction continues to strain supply. Buyers who understand how to qualify for financing and take advantage of down payment assistance programs can still secure a foothold in the market.
As buyers explore starter homes across Colorado, staying informed and financially prepared is the key to success in one of America’s most scenic—but increasingly expensive—housing markets.
Carol McDaniel is a dedicated and results-driven professional with 5 years of experience and US News. Known for her strong problem-solving skills and collaborative mindset, Carol has built a reputation for delivering high-impact results across diverse teams and projects.
Throughout her career, she has demonstrated expertise in 2 core skills or areas, e.g., client relations and project coordination, and is passionate about continuous learning and meaningful contribution. Carol thrives in dynamic environments and consistently brings professionalism, adaptability, and a focus on growth to every role she takes on.