Three towns in Colorado made the list of U.S. cities where starter homes cost over $1 million.
Starter homes represent the lowest third of home prices in a specific region.
Nationally, the average value of a starter home stands at $192,514, but more than 233 cities in more than half the states have starter home prices that exceed $1 million.
Five years ago, there were only 85 cities where a starter home cost $1 million.
California leads the U.S. in cities with million-dollar starter homes, followed by New York and New Jersey.
Colorado ranks sixth in the U.S. for the number of municipalities with starter homes priced over $1 million.
, three Colorado towns have starter homes valued at over $1 million:
- Cherry Hills Village — Typical starter home price: $2.2 million
- Bow Mar — Typical starter home price: $1.6 million
- Columbine Valley — Typical starter home price: $1.2 million
Starter homes in Cherry Hills Village, Bow Mar, and Columbine Valley exceed $1 million due to several factors. The desirable locations near Denver attract affluent buyers, and limited inventory increases competition, driving prices higher.
The communities’ wealth, high-performing schools, and ample amenities further elevate property values. The prevalence of larger, custom-built homes also contributes to the premium prices.
Colorado’s luxury markets include the Denver suburbs and popular mountain resort towns like Aspen and Vail. However, these mountain towns have fewer homes, and they rarely include starter homes.
Denver area starter homes average $436,836, which is higher than the typical U.S. starter home but lower than the million-dollar mark in Cherry Hills Village, Bow Mar, and Columbine Valley.
Denver metro million-dollar market
In the Denver metro, closed sales of $1 million-plus homes dropped 18% last month to 499, down from 607 in June and 1.4% from July 2024, according to July’s monthly report from the Denver Metro Association of Realtors.
Overall sales volume in that category decreased by 24% from June’s $1 billion to $776 million last month. That’s a drop of about 5% from $814 million in July 2024.
Buyers in this segment have become more selective, , member of the DMAR market trends committee.
Buyers who can manage their anxiety and are financially stable seek properties that meet their needs and those of the near future. That pool, however, is much smaller and more selective compared to previous months and years.
“The $1+million market has become less about who can afford the asking price and more about who’s willing to pay it,” Duffy said.
“This segment isn’t about slashing prices until someone swipes right—with an increase of 25.5% in new listings from this time last year, it’s about understanding that you can’t market and price your way out of the public’s uncertain mindset.”
Sellers in this price range are generally in a better position to handle a decline in their property’s value and negotiate favorable terms for their next purchase, Duffy said.
The news and editorial staffs of The Denver Post had no role in this postap preparation.
