Is Buying a Starter Home in Denver Still Possible?
Spoiler alert: Yes, but it takes strategy, local insight, and the right team on your side.
With rising home prices and tight inventory, many first-time buyers are asking: Is it still possible to find an affordable starter home in Denver? While the market has grown more competitive in recent years, opportunities still exist for savvy buyers willing to be flexible and act quickly.
In this post, we’ll explore what today’s starter home market looks like in Denver, what you can expect as a first-time buyer, and where to focus your search.
What Is a Starter Home?
A starter home is typically a smaller, more affordable property purchased as a first step into homeownership. It may not be your forever home—but it’s a smart way to build equity, establish roots, and stop paying rent.
Key Features of a Starter Home:
- Usually 2–3 bedrooms
- More affordable than median-priced homes
- May need some updates or cosmetic work
- Located in up-and-coming or established neighborhoods with price potential
Can You Still Find Starter Homes in Denver?
Yes—but competition is real. According to the Denver Metro Association of Realtors most recent report, Denver’s median home price continues to rise, but there are still pockets of affordability in and around the metro area.
The good news? Interest in condos, townhomes, and older single-family homes in transitional neighborhoods has created more options for first-time buyers.
Best Neighborhoods in Denver for Starter Homes (2025 Edition)
If you’re willing to look beyond the most popular zip codes, you’ll find some incredible opportunities. Here are a few Denver-area neighborhoods and suburbs where starter homes are still within reach:
1. Barnum & Westwood (Denver Proper)
Affordable bungalows and mid-century homes with character.
Great for: Value seekers, DIYers, and central location lovers.
Median Price: Below Denver’s citywide average.
2. Montbello & Green Valley Ranch
Popular with first-time buyers for their newer builds, fenced yards, and square footage.
Great for: Families, commuters, and buyers who want more home for the money. Quick access to DIA and I-70.
3. Sherrelwood & Twin Lakes (Adams County)
Just north of Denver, these areas offer affordable ranch homes and quiet streets.
Great for: Budget-conscious buyers wanting proximity to downtown.
4. Lakewood (specifically Eiber & Edgewood)
A mix of condos, townhomes, and small single-family homes with easy access to light rail.
Great for: Young professionals and buyers wanting city access without city prices.
5. Aurora Highlands & Del Mar Parkway (Aurora)
Aurora continues to offer starter-home inventory at more accessible price points.
Great for: First-time buyers looking for strong community and future growth.
Financing Your Starter Home
First-time buyers have more options than you might think, including:
- FHA Loans: Lower down payment (as low as 3.5%)
- Down Payment Assistance Programs (like CHAC or MetroDPA)
- VA & USDA Loans (for qualified buyers)
- First-Time Homebuyer Grants
Pro Tip: Get pre-approved before house hunting. A trusted local lender and a responsive agent will make all the difference in Denver’s fast-paced market. We work with the top lenders in the area and can get you connected.
Why Working With the Right Agent Matters
The starter home market moves fast—homes in good condition and priced well often receive multiple offers. A Usaj agent will:
- Help you act quickly when the right listing appears
- Negotiate smartly to get your offer accepted
- Connect you with trusted lenders and inspectors
- Make sure you understand your rights, responsibilities, and long-term options
At Usaj Realty, we love helping first-time buyers navigate the process with confidence and clarity.
Final Thoughts: Starter Homes Are Still Out There
While the Denver real estate market has changed, buying a starter home is still within reach—especially with preparation, the right mindset, and a team that knows the terrain. It’s not about finding the perfect home; it’s about finding the right one to get you started on your real estate journey.
Thinking about buying your first home in Denver?
Let’s chat! Our agents know where the hidden gems are—and how to help you land one. Reach out to one of our experienced agents today!
