Homes are more expensive in Denver's suburbs than the city

Buyers once flocked to the suburbs for cheaper housing. Now, you'll get more space but could be paying more for your home than urban dwellers.

Why it matters: No one's winning this market.

What they're saying: "I rarely have people who say they want to be in the thick of it all. They tend to want nature and serenity and peace and quiet," says Kelly Moye, a local Compass agent and spokesperson for the Colorado Association of Realtors.

Driving the news: Remote work spurred demand for suburban life, and is still a driving force. There are also two generations going through big life changes, Moye says.

• Millennials are in their 30s, buying first or second homes and starting families. Those buyers tend to want space and yards for their growing families and pets.
• And boomers have become empty-nesters. Moye has seen a surge in demand for low-maintenance patio homes, which are typically built in the suburbs.

Yes, but: Real estate is hyperlocal, which means what you're looking for — and where — matters.

What's happening: Home prices are dropping across Denver, but the suburbs are holding steadier due to high demand.

By the numbers: Denver County's median home sales price was $668,750, down 10.8% from April 2022 to April 2023, per MLS data shared with Axios.

• In Jefferson County, the median home sales price was $685,000, down 5.5%.
• In Aurora, it was $535,000, down 7%.
• In Centennial, it was $675,000, down 11.8%.

Zoom out: With high mortgage rates and low inventory across the board, buyers are settling down wherever they can find a house within their budget — or sitting on the sidelines, says Redfin senior economist Sheharyar Bokhari.

• If home prices in urban areas continue to decrease, we could see a return to those areas.
• "The cost will outweigh any amenity," Bokhari says.

What's next: Budget-conscious buyers will start looking in more rural areas as inventory and affordability issues spread through the suburbs.

The bottom line: The suburbs are pricey, but you still get more space for your splurge.