Douglas County home prices sideline buyers amid affordability crunch

A median Douglas County home now costs $713,600, and the typical monthly owner payment has climbed to $2,893. That price point is shrinking the buyer pool across Castle Rock, Lone Tree, Castle Pines and Sedalia, especially for first-time buyers and young families trying to stay in the county.

The gap is stark when set beside local incomes. Douglas County’s median household income was $149,600 from 2020 to 2024, which means a typical mortgage payment on a median-valued home would consume about 23% of gross household income before taxes, insurance and other debt are added in. For households below the county median, the hurdle rises fast. Rent has not offered much relief either, with median gross rent at $2,193 a month.

The squeeze is showing up while the county keeps growing. The U.S. Census Bureau estimated Douglas County’s population at 399,396 on July 1, 2025, up from 357,993 in April 2020, an increase of about 41,400 residents. Douglas County government says its Community Development Department regularly tracks housing, population and development trends in a Population & Development Report, underscoring how closely the county is watching the pace of growth and the pressure it puts on housing.

The problem is not isolated to one county. A 2025 affordability report from United Way Denver and the BuildStrong Foundation ranked Colorado 41st among the 50 states for affordability in 2023. It also found Colorado was one of only 12 states where more than half of renters were cost-burdened. The report cited Zillow data showing Colorado had the nation’s 6th-highest median single-family home price at $558,600 in February 2025.

The Denver metro market showed some cooling, but not enough to reset affordability. REcolorado reported 4,340 new listings and 2,262 closed sales in January 2025, with a median closed price of $575,000. By February, the median closed price rose to $599,000 and homes were spending a median 33 days in MLS. In September, the median closed price was still $586,000 and homes were taking a median 37 days on market.

That slower pace gave buyers more time to decide, but it did not make homes cheaper. For workers earning well below the county median, and for young families trying to buy near schools, jobs and transit, Douglas County’s rising prices are doing something more lasting than stretching budgets: they are pushing ownership out of reach.