How Remote Work is Reshaping Denver’s Real Estate Market

This article was originally published May 2025 and was lasted updated October 2025. 

Denver’s real estate market is undergoing a dramatic transformation as workers continue to gravitate towards remote work. 25% of downtown Denver office space is now vacant, and the Mile High City’s once-bustling business district has vacancy levels not seen since the 2008 crash. This significant shift is forcing property owners and investors to reconsider the future of commercial real estate in the metro area.

As work and lifestyle preferences continue to evolve post-pandemic, Denver’s housing market is experiencing a profound evolution that extends from empty office towers to residential neighborhoods seeking more space and flexibility.

Denver’s Pre-Pandemic Real Estate Landscape

Denver’s real estate market was already a magnet for new residents long before remote work became mainstream. The Mile High City’s proximity to the Rocky Mountains created a strong draw for those seeking an active lifestyle with urban amenities. Even prior to the pandemic, Denver experienced steady growth as professionals moved to the city primarily based on job opportunities, accepting that their housing choices were constrained by reasonable commute distances.

Commercial real estate thrived in downtown Denver with office buildings maintaining healthy occupancy rates. The bustling downtown area generated significant economic activity for surrounding businesses, restaurants, and retail establishments. Companies viewed their physical office spaces as essential components of their operations, with little consideration for remote work arrangements.

Housing trends in Denver before 2020 saw buyers prioritizing:

• Proximity to employment centers
• Access to public transportation
• Urban amenities within walking distance
• Smaller homes with less maintenance in exchange for shorter commutes

The pre-pandemic Denver market operated on traditional assumptions about work and home location relationships. Denver neighborhoods close to downtown commanded premium prices while outlying areas with larger homes and lots were considered less desirable due to longer commute times. This created a predictable pattern of development and real estate investment across the metropolitan area.

Remote work wasn’t entirely absent from Denver’s pre-pandemic landscape, but it represented a small percentage of the workforce and had minimal impact on broader real estate decisions. The conventional wisdom that living close to work was essential kept Denver’s housing market concentrated around major employment centers.

The Rise of Remote Work After COVID-19

Increased Demand and Home Prices

Remote work has transformed Denver’s real estate landscape since the pandemic began. Many professionals, no longer tethered to physical offices, flocked to Denver attracted by its outdoor recreational opportunities and vibrant culture. This migration pattern has significantly driven up home prices across the region. The median Colorado home price jumped 48% in the past five years, climbing from $410,000 to $607,000. This dramatic price increase reflects the intense competition among buyers seeking homes in desirable Colorado locations.

Shift in Housing Preferences

Remote workers’ priorities have reshaped what buyers look for in Denver homes. Properties with dedicated workspaces, high-speed internet, and quieter neighborhoods command premium prices in today’s market. We’ve observed increasing demand for homes featuring extra bedrooms, finished basements, and flex spaces that can function as home offices. Buyers now evaluate floor plans with work-from-home requirements in mind, often seeking homes with sound-dampening features and partitioned spaces rather than completely open layouts.

Suburban and Rural Growth

The diminished need to live near urban office centers has accelerated development in Denver’s suburban and rural communities. Neighborhoods like Parker and Littleton, offering larger lot sizes and more square footage, have become particularly desirable. Remote workers prioritize these areas for their combination of space, privacy, and relative affordability compared to central Denver locations. This migration pattern has expanded the geographical footprint of Denver’s housing market, with areas once considered too distant for daily commuting now in high demand.

Inventory and Mortgage Rate Impacts

Denver’s housing inventory reflects the complex interplay between remote work and economic factors. Many homeowners with pandemic-era low mortgage rates remain reluctant to sell, creating inventory constraints. However, recent data from Realtor.com indicates inventory levels are beginning to exceed pre-pandemic norms in some Denver neighborhoods as buyers adjust to higher interest rates. This shifting supply-demand dynamic creates both challenges and opportunities in Denver’s evolving real estate market.

Luxury Home Acceleration

Remote work has dramatically boosted Denver’s luxury home segment. The number of homes listed above $1 million has more than doubled since 2020, with current listings reaching 6,274 compared to 3,156 five years ago. This expansion of the luxury market demonstrates how remote work has enabled higher-income professionals to prioritize lifestyle and home amenities over proximity to offices. Mountain views, outdoor spaces, and premium finishes now rank higher on buyers’ wish lists than commute times.

How Remote Work Has Shifted Denver’s Housing Demand

Remote work has fundamentally transformed Denver’s housing landscape, creating new priorities for homebuyers and reshaping neighborhood desirability. The pandemic-accelerated shift to flexible work arrangements has driven housing demand and pricing to unprecedented levels across the metro area.

Migration Patterns Into and Out of Denver

Denver has become a magnet for remote workers seeking an enhanced quality of life while maintaining professional opportunities. The city’s favorable climate, outdoor recreational options, and vibrant culture have attracted a significant influx of professionals from coastal cities who can now work from anywhere. This migration has contributed directly to the city’s population growth and intensified housing demand throughout the region.

Simultaneously, we’re seeing movement within Denver itself as residents redistribute across the metro area. Many longtime Denver residents are relocating to suburban and rural communities where they can secure larger properties while maintaining access to urban amenities. This bi-directional migration pattern—inbound from other states and outbound from the city center—has created competitive market conditions across multiple neighborhoods and price points.

Suburban vs. Downtown Property Values

The demand shift between suburban and downtown properties has reshaped Denver’s real estate valuation patterns. Suburban homes with larger yards, dedicated office spaces, and outdoor amenities have experienced remarkable appreciation, with neighborhoods like Parker and Littleton seeing particularly strong buyer interest. These areas offer the space and tranquility remote workers prioritize while maintaining reasonable access to urban conveniences.

Downtown property values have experienced a cooling effect as remote work reduces the necessity of living near employment centers. While the median Colorado home price has increased by 48% over the past five years (from $410,000 to $607,000), this growth hasn’t been uniform across all neighborhoods. Properties in downtown areas that previously commanded premium prices due to walkability and proximity to offices have seen less aggressive appreciation compared to their suburban counterparts.

Office Space Conversions and Vacancies

Downtown Denver’s office market faces significant challenges with approximately 25% of office space currently sitting vacant. This vacancy rate represents levels not seen since the 2008 financial crisis and signals a structural change in commercial real estate demand. Companies are actively seeking to release their leased spaces as remote and hybrid work models reduce the need for traditional office footprints.

The abundance of vacant commercial space presents both challenges and opportunities for Denver’s real estate ecosystem. While conversion potential exists, the technical and financial complexities of transforming office buildings into residential units remain substantial. The current economic environment, characterized by higher interest rates and construction costs, further complicates potential redevelopment efforts.

New Commercial Development Trends

New commercial developments in Denver increasingly reflect the reality of remote work preferences. Developers are adapting designs to incorporate features that appeal to the remote workforce, including built-in office spaces, enhanced technological infrastructure, and expanded outdoor living areas. Communities being planned today prioritize amenities that support work-life integration rather than separation.

We’re also witnessing the emergence of mixed-use developments that blend residential, retail, and flexible work spaces within single communities. These developments aim to create self-contained ecosystems where residents can live, work, and access amenities without extended commutes. Energy efficiency, smart home features, and sustainable building practices have become standard expectations rather than luxury add-ons, reflecting the increased importance of home environments in the remote work era.

Denver Neighborhoods Experiencing the Biggest Changes

Remote work has dramatically reshaped Denver’s real estate landscape, creating significant shifts in neighborhood popularity and property values, not only for those shopping for a primary residence, but also those analyzing Denver neighborhoods for investment property potential. We’ve tracked these changes across the metro area as buyer preferences evolve in response to work-from-home flexibility.

Areas Seeing Price Increases

Metro Denver home prices have surged considerably since the onset of remote work trends, with prices increasing approximately 35% since February 2020. The median Colorado home price has climbed to $607,000, representing a 48% increase from five years ago. This substantial growth reflects the changing priorities of homebuyers in the remote work era.

Suburban markets around Denver have experienced particularly notable price increases as remote workers seek larger homes with dedicated office spaces. These areas offer the perfect combination of spaciousness and amenities that remote workers prioritize, driving competition and pushing prices upward throughout the metro region.

The South Denver Metro area has become especially desirable, with neighborhoods featuring larger yards and outdoor amenities commanding premium prices. As remote work eliminates daily commutes, these once-secondary markets have transformed into primary targets for homebuyers seeking improved quality of life.

Previously Overlooked Neighborhoods Gaining Popularity

Affordable suburbs like Wheat Ridge, Englewood, Arvada, Aurora and Commerce City that were once considered less desirable due to commute times are now experiencing unexpected popularity. These neighborhoods offer more space and lower prices compared to central Denver, making them attractive to remote workers seeking value without sacrificing lifestyle quality.

Rural and exurban areas around Denver have seen remarkable growth in interest, including Parker, Brighton, Castle Rock, Firestone, and Elbert County. These regions provide the space, nature access, and family-friendly environments that remote workers increasingly value when selecting homes. Areas that previously struggled to attract Denver professionals are now seeing significant buyer interest.

Neighborhoods with robust amenities like high-speed internet connectivity, quality schools, parks, and community features have risen in desirability. Remote workers prioritize these elements as they seek the perfect balance between productive work environments and personal enjoyment. Areas offering this combination of features, such as Central Park, Cherry Creek, Littleton, Broomfield, and Lakewood have experienced some of the most dramatic increases in demand throughout the Denver region.

Emerging neighborhoods that were previously overlooked are gaining traction specifically because they offer the right mix of affordability, comfort, and remote work infrastructure. From Elyria-Swansea to West Barnum, Sun Valley, RiNo, Montbello, Cole and Athmar Park, these areas provide remote workers with the space needed for home offices while maintaining access to Denver’s recreational opportunities and urban amenities.

Frequently Asked Questions

How has remote work impacted Denver’s commercial real estate market?

Remote work has led to approximately 25% of downtown Denver office space sitting vacant, creating a downturn similar to the 2008 financial crisis. Property owners and investors are now reconsidering the future of commercial spaces, with discussions around converting offices to residential units despite the challenges involved.

What changes have occurred in Denver’s residential real estate market since the pandemic?

Denver’s residential market has seen the median home price rise 48% from $410,000 to $607,000. Buyers now prioritize properties with dedicated workspaces, high-speed internet, and quieter neighborhoods. There’s increased demand for homes with extra bedrooms, flexible spaces, and larger yards, particularly in suburban areas.

Which Denver neighborhoods have become more desirable for remote workers?

South Denver Metro areas, particularly Parker and Littleton, have gained significant popularity due to their larger yards and outdoor amenities. Previously overlooked suburbs are attracting remote workers because of their affordability and spaciousness, while neighborhoods with robust amenities like high-speed internet and quality schools are seeing increased demand.

How has remote work affected housing prices in Denver?

Home prices have surged approximately 35% since February 2020. Suburban homes have appreciated significantly as buyers prioritize space and lifestyle over commute times. Meanwhile, downtown property values have cooled due to reduced demand for proximity to offices.

What features are remote workers looking for in Denver homes?

Remote workers are seeking homes with dedicated office spaces, high-speed internet connectivity, larger yards, and quieter neighborhoods. Additional bedrooms, flexible spaces, and outdoor amenities have become priorities. Many buyers are willing to move further from the city center to get these features while maintaining access to Denver’s recreational opportunities.

How is the luxury home market performing in Denver?

The luxury home market has flourished, with listings above $1 million more than doubling since 2020. Higher-income remote professionals are prioritizing lifestyle amenities over proximity to offices, contributing to strong demand in this segment.

What migration patterns have emerged in Denver due to remote work?

Denver has experienced bi-directional migration, with professionals from coastal cities moving to Denver for better quality of life, while longtime Denver residents are relocating to suburban areas for larger properties. This has intensified housing demand throughout the metro area and reshaped neighborhood popularity.

Are new commercial developments adapting to remote work trends?

Yes, new commercial developments are incorporating features that support work-life integration, such as improved connectivity, flexible workspaces, and amenities that appeal to remote workers. There’s a growing trend toward mixed-use communities that blend living, working, and recreational amenities.

Conclusion

Denver’s real estate landscape has been fundamentally transformed by remote work, evidenced by 25% downtown office vacancy and a concurrent 48% surge in median home prices as buyers prioritize dedicated workspaces and quiet neighborhoods over commute times. This evolution is permanent, with suburban areas like Parker and Littleton continuing to gain popularity as lifestyle considerations outweigh proximity to employment centers. The market is adapting through mixed-use developments and office-to-residential conversions, reflecting buyers’ changing priorities in this new reality. Denver’s real estate future ultimately depends on embracing these remote work dynamics rather than waiting for a return to pre-pandemic norms.