How Homeownership Builds Wealth in Denver’s Luxury Markets

How Owning a Home in Denver Drives Your Net Worth

Picture yourself a few years from now with more financial stability, greater equity, and true freedom. If homeownership figures into that vision, you should know it delivers benefits beyond simply having a place to live.

At Highlands Property Group I see luxury homes in Denver submarkets — Highlands, LoHi, Sloan’s Lake, Sunnyside, Jefferson Park — as more than lifestyle choices. They are wealth engines. Below is how owning a home builds net worth, updated with recent data, and how you can use that to your advantage in Denver.

National & Regional Trends in Real Estate Wealth

The U.S. housing market has reached new highs. According to Zillow, as of June 2025 the U.S. housing stock is valued at $55.1 trillion, up $20 trillion since early 2020.

 Over the past year, housing wealth increased by $862 billion, or roughly 1.6 percent.

However, growth is cooling. Zillow forecasts a modest -0.9 percent decline in home values through the end of 2025.

Locally, Denver’s market has shifted. Zillow reports the average home value in Denver is now $535,897, down 4.5 percent year over year. Zillow Meanwhile Redfin shows a median price in Denver around $585,000, up 1.7 percent year over year, but with price per square foot falling by nearly 4.9 percent. Redfin

In recent months, home price growth has flattened nationally as inventory rises. In March 2025, inventory surged nearly 9 percent year over year and price growth nearly stalled, with new listings exceeding pending sales. Zillow That shift is visible in many markets including Denver.

Despite cooling trends, long-term appreciation and equity building remain powerful forces for homeowners who buy strategically and hold.

Homeowners vs Renters: The Equity Gap

Data consistently shows a large disparity in net worth between homeowners and renters. The National Association of Realtors (NAR) frames homeownership as a way to enforce savings. Lawrence Yun, NAR’s Chief Economist, says:

“Homeownership is a catalyst for building wealth for people from all walks of life. A monthly mortgage payment is often considered a forced savings account that helps homeowners build a net worth about 40 times higher than that of a renter.”

For many household portfolios, home equity is the largest single asset. According to First American, housing equity often contributes more to household net worth than stocks, retirement accounts, or alternative investments — especially for middle income brackets and higher.

Additionally, as of March 2025, U.S. homeowners collectively hold over $35 trillion in home equity. Wikipedia In the middle income tiers, home equity often accounts for 50 to 70 percent of net worth. Wikipedia

How This Works in Denver’s Luxury Submarkets

In neighborhoods like Highlands and LoHi your home is not just a residence. It is a strategic wealth tool. Here are the mechanisms:

• Appreciation: Luxury homes in sought-after Denver neighborhoods often appreciate faster than city averages, especially in areas of limited land and continued demand.

• Equity buildup: With each mortgage payment you increase your ownership share. Over time, as your home’s value goes up, that equity multiplies.

• Leverage: Real estate allows you to use borrowed capital to control an asset that should rise in value.

• Tax benefits: Mortgage interest and property tax deductions (where applicable) can reduce effective cost.

• Savings discipline: Making regular mortgage payments channels money into your long-term financial growth.

Let’s run a scenario: imagine you purchase a Highlands property at $1.2 million. If it appreciates at 5 percent per year over ten years, it could reach about $1.95 million. After paying down your mortgage, your net gain is notable.

That said, the market is showing signs of moderation. In Denver, as new listings continue to rise and pricing pressure increases, buyers are gaining more leverage. Zillow Some neighborhoods in Denver have resisted value drops even as overall values softened. Denverite In metro Denver, total housing wealth was once estimated at $628 billion, though that number has seen a slight decline — about 1.6 percent in the past year — reflecting cooling pressures. Axios

A Realtor with an Investment Perspective

My background in commercial real estate means I approach residential deals with capital discipline and strategy. I help clients buy homes that are beautiful and structurally sound, but also assets. My negotiation, analytics, and market insight enable me to identify hidden value others often miss.

My mission is to protect your capital, mitigate risk, structure the deal to benefit you, and always align decisions with your long-term financial goals.

Next Step: Begin Building Your Equity

If you are thinking of buying in Sloan’s Lake, Highlands, Sunnyside, LoHi, or Jefferson Park, now is the time to work with someone who sees beyond the property. Someone who understands both lifestyle and long-term gains.

At Highlands Property Group I am ready to help you navigate Denver’s luxury market, structure smart purchases, and grow your net worth through real estate.

📩 Contact Highlands Property Group to schedule a strategy call or complete our Home Buyer Intake Form to begin.