If you've been watching Denver real estate headlines lately, you've probably noticed a split story. Single-family homes are holding steady, even climbing toward new highs in many neighborhoods. Condos are telling a very different story, and the gap between the two has become one of the defining features of the 2026 market.
According to a new market analysis reported by the Denver Gazette, drawing on data prepared for the Denver Metro Association of Realtors and the Colorado Association of Realtors, Denver condo prices are running about 14% below their 2020–2022 peak, with per-square-foot values down closer to 22–23% ("Is Denver's Condo Market Unraveling?," Denver Gazette, July 30, 2026). A typical condo that once sold in about a week, slightly above asking, is now taking nearly seven weeks and closing roughly 5% under its original price. The report notes that sales have fallen back toward levels last recorded in 2008, with inventory accumulating and more sellers cutting from their original asking prices. Homes.com's June 2026 market report backs this up, pegging the median Denver condo price at $310,000, down 4.6% year over year, with townhouses down about 5% to $420,000.
The real-world numbers make the trend concrete. The Gazette highlighted a mid-rise, two-bedroom condo in Englewood that recently sold for $460,000 carrying annual HOA fees of $5,713. In Littleton, a single-bedroom condo closed for just $215,000 in 2024, with annual HOA dues of $3,867. Those fees add up fast on top of a mortgage payment, and they are a big part of why the condo market has become the toughest entry point for first-time buyers, even though it is technically the lowest price point.
What's driving it? Mostly three things. HOA dues have doubled, tripled, or in some buildings quadrupled as insurance premiums climb 20–40% annually, since association master policies are absorbing higher costs from construction litigation, hail damage, and wildfire risk. A wave of new apartment supply is giving renters cheaper, more flexible alternatives, and landlords are offering generous concessions to fill units. And Colorado's construction-defect litigation environment has made new condo development nearly unworkable for builders, so most new attached housing supply has shifted toward apartments instead of for-sale condos. The Gazette's report estimates buying now costs roughly 80% more per month than renting a comparable unit, a spread that has kept widening.
It is worth noting that this is not a sign the broader Denver market is collapsing. A separate second-quarter market report cited alongside the condo data found that population growth in the metro area has slowed to just 0.3% over the year, adding roughly 9,000 residents, while the region also saw a net loss of nearly 8,000 jobs over the year ending in March 2026. Slower growth is reshaping demand across the board, but single-family homes have absorbed that shift far better than condos, largely because they are not weighed down by association fees and shared-building risk.
There is a silver lining. Colorado's 2025 Construction Defects and Middle Market Housing legislation is starting to open the door for more condo development. The law narrows defect lawsuits to cases involving real damage or safety risks, requires expert opinion to back certain claims, gives builders a chance to respond or repair before litigation, and offers legal protections to builders who provide warranties and third-party inspections. It will take time to show up in new supply, but it is a meaningful shift. In the meantime, buildings with well-funded reserves and stable HOA fees can still be smart buys. The key is knowing which ones, and that is where a close read of HOA financials matters as much as the listing price.
For buyers, that means condo shopping now calls for real diligence: request the reserve study, ask about any pending or recent special assessments, check the building's insurance claims history, and look at how much HOA dues have risen over the past three years before you fall for a low list price. For sellers, it means pricing realistically, being transparent about HOA financials up front, and leaning on strong marketing and staging rather than assuming a quick, above-ask sale like the market delivered a few years ago. And for anyone rethinking condo living altogether, it might be the right moment to look at single-family and townhome options in Highlands Ranch, Castle Rock, or Parker, where prices have held far more steady and inventory tells a very different story.
Whether you're buying a home in Denver, selling your home in Denver, or relocating from out of state, The Northrop Group can walk you through what these numbers actually mean for your situation, building by building, not just headline by headline.
Jessica Northrop, founding partner of Compass Denver, is a top 0.5% real estate agent with over $1 billion in lifetime sales. Recognized as a leading Denver luxury real estate agent, Jessica specializes in custom homes, new construction, and homes with mountain views across the Denver metro, Highlands Ranch, and Backcountry. Discover why Jessica Northrop is consistently ranked among the top Denver real estate agents for buyers and sellers of luxury homes in Colorado.
Sources:
Compass
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Denver, CO 80206
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Jessica Northrop
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