Castle Rock has grown significantly in popularity over the years. And with growing popularity comes a natural increase in cost of living, especially home prices. But what does that cost of living look like for those considering moving to Castle Rock, CO?

As a real estate broker I have access to the Multiple Listing Service (MLS) that hosts Castle Rock real estate listings. By looking through historical trends in the MLS we can bring clarity to this question and others. These numbers are taken in October, 2024.

• Is Castle Rock Expensive?
• What are the home prices in Castle Rock?
• How much do you need to make to live in Castle Rock?
• Are new homes in Castle Rock expensive?
• How much do you need to make to own a home in Castle Rock over $1,000,000?

Is Castle Rock Expensive?

Generally speaking, I would say that Castle Rock is an expensive place to live in terms of housing prices. Below is some analysis after diving into the statistics as of October 2024.

In 2021 the number of sold listings between $400,000-$500,000 was over 400 per year. With the majority of houses selling between $400,000-$600,000.

By 2024 the number of sold listings between $400,000-$500,000 dropped to just 100.

With the majority of houses selling between $600,000-$800,000.

See Figure 1

Figure 1: Chart and data derived from RE Colorado Multiple Listing Service

This rate of appreciation, albeit challenging from an affordability standpoint, has been common in many areas since we saw the interest rates plummet to an all time low from 2020 into early 2022. The low interest rates increased purchasing power, increased demand, and sent home prices soaring.

Looking at the historic sales trend for residential homes we can see that 10 years ago in 2014 the median sales price for a home in Castle Rock was just over $300,000. Today in 2024 the median sales price for a home in Castle Rock has grown to roughly $650,000.

See Figure 2

Figure 2: Chart and data derived from RE Colorado Multiple Listing Service

Denver, in comparison, had a median home price in 2014 of roughly $250,000 and by 2024 rose to roughly $550,000. Castle Rock’s median home price has stayed roughly $100,000 higher than Denver for 10 years.

Interestingly, the number of sold homes above $1,000,000 has remained steady from 2021 to 2024. In 2021, 22, 23, and 24 there were just over 200 sold homes each year with a sales price of over $1,000,000.

What are the Home Prices in Castle Rock?

A single-family home in Castle Rock below $500,000 is hard to find. Doing a quick property search in the area as I'm writing this revealed a whopping 8 total choices…

If we open that up to Condos and Townhomes there are roughly 50 homes to choose from with about a dozen in the 350,000-400,000 range. There are certainly choices for homes under $500k but its either limited in number or limited to townhomes and condos.

If you’re looking for a home between $600,000 and $800,000 there are an abundance of choices, all varying in age with many brand new homes to choose from. Almost all options in this price range come in at over 2,500sqft and about 25% of them built in 2020 or newer.

There are also about as many homes for sale in the $800,000-$1,200,000 range as there are in the $600,000-$800,000 range. About 90% of the homes in this range are over 3,500sqft and have 3 or 4 car garages.

How much do you need to make to live in Castle Rock?

With the median home sales price sitting around $650,000 in Castle Rock, what does that look like from an affordability standpoint?

A $650,000 home with 20% down, which would be $130,000 down, or a loan amount of $520,000, factoring in taxes and insurance, with an interest rate of 6.5% puts you at roughly $3,810 per month.

If you budget for your mortgage being 1/3 of your total income, before taxes, you would need to make $11,430 per month or $137,160 per year to have a comfortable mortgage at the median sales price in Castle Rock.

If you want your mortgage to be 1/4 of your total income, before taxes, that annual income number jumps to $182,880.

Are new homes in Castle Rock expensive?

New homes are being built in several different communities in and around Castle Rock.

I am personally a big fan of newly built homes. My wife and I just built a home with Toll Brothers here in Castle Rock and had a great experience. Be sure to see my other article on lessons learned in that process.

So, are new homes expensive in Castle Rock? Let's take a look.

On average, in 2024, new home sales are around the $800,000 price point.

An $800,000 home with 20% down, an interest rate of 6.5%, and including taxes and insurance, puts you around $4,700 per month. If we use the same budgeting factor of your mortgage being 1/3 of your income before taxes you would need a household income of $14,100 per month or $169,200 per year to afford this kind of home.

What if I don’t have 20% down?

You don’t need 20% down to purchase a home, but it significantly reduces your monthly payment if you do.

Lets say you have just 5% to put down on a home. An $800,000 home at 5% down, including taxes and insurance, jumps the monthly payment to $5,950 per month, as compared to $4,700 per month with 20% down. Its important to know that the $5,950 per month number is also including nearly $500 per month in Private Mortgage Insurance (PMI) which is required if you’re using a conventional loan with less than 20% down. This fee is tacked on by lenders to reduce their risk if you default on paying back your mortgage. Unfair, I know, but if they’re the ones with the money they tend to make the rules.

How much do you need to make to own a home in Castle Rock over $1,000,000?

Nearly half of the new homes for sale in Castle Rock are priced over $1,000,000.

With most of these new homes around the $1,200,000 mark, lets take a look at what that equates to monthly and yearly.

A $1,200,000 home with 20% down, a rate of 6.5%, and including taxes and insurance weighs in at $7,085 per month.

If you budget for your mortgage being 1/3 of your income you would need to earn $255,000 per year as a household to hit this ratio.

Its also important to note that the conforming loan limit in Douglas county in 2024 is $816,500. So, if you are purchasing a home where the loan amount exceeds this, you may be subject to a Jumbo Loan which could have higher interest rates. An example of this would be a $1,100,000 home with 20% down. The purchase price is $1,100,000 but the loan amount after 20% down is $880,000.

All mortgage lenders are different so it’s important to shop around and find a lender with good rates and low fees. Need help deciphering all this? Contact me at janderson@solidoakre.com and we can set up a call.

So, is Castle Rock Expensive?

Yes, Castle Rock tends to be more expensive than other areas but that doesn't mean its always more expensive. There are still plenty of options for first-time home buyers, and plenty of options for affordable houses and townhomes in wonderful neighborhoods. If you’re looking to upgrade to a larger home, a forever home, or build a new home, Castle Rock should be high on your list to check out.