6 Colorado Cities Ideal for First Time Homebuyers

The Mile High City may not be the best place for first time buyers to house hunt, but there’s still good news: it definitely isn’t the worst. In fact, according to a new SmartAsset report, Denver ranked as the No. 58 best city for first-time homebuyers to purchase. And it’s not the only Colorado city to make the list.

While cost of living is on the rise and a big concern for many Coloradans, Colorado had several contenders in the report, with Fort Collins jumping from the No. 32 best city for first-time homebuyers in 2021 to No. 27 this year, while Colorado Springs took the No. 33 spot for 2022.

The report names Bellevue, Washington as the No. 1 spot for first-time homebuyers for 2022, but Denver-area suburbs continued to make a dent down the list: Lakewood is No. 76, Thornton is No. 84 and Aurora is No. 101.

The report compared 181 total cities across four categories: home market favorability, affordability, livability and employment. Denver's lowest-scoring category was livability, which takes into consideration the concentration of dining and entertainment establishments, violent crime rates and average commute times, which are on the rise in Denver as more people return to offices.

The average cost of living in Denver as of the first quarter of 2022 was $3,537.73, a 12.9% increase from the same period in 2019. Denver's affordability may be affecting the population, which shrunk by 6,167 people in the year ending July 2021. However, Denver is still a popular place to visit and a recent Zillow report found a Colorado suburb was the real estate website's third most popular market.

The home market favorability score, which measures the price-to-rent ratio, five-year home value appreciation and foreclosure rate, was Denver's best performing category in the SmartAsset report.

From Fort Collins to Colorado Springs, there are a several great options for first time home buyers in the state. If you’re interested in exploring any of these exciting areas, contact Metrowest today!