FOX31 Denver

Despite slight rebound, housing inventories remain low in Denver and Aurora

Houses dot the landscape at Colorado's Steamboat Ski Resort, Wednesday, Aug. 3, 2022, in Steamboat Springs, Colo. The city council passed a rule in June that could prove to be a model for other vacation towns: A ban on new short-term rentals in most of the city and a ballot measure to tax bookings at 9% to fund affordable housing. (AP Photo/Thomas Peipert)

DENVER (KDVR) — Though they are still at record lows, the Denver metro area’s housing levels are rebounding faster than most other places in the country.

Colorado and the Denver metro have some of the nation’s biggest gaps in housing, according to housing policy analysts. The state and metro have been one of the nation’s hotspot destinations for the better part of a decade, and homebuyers burned through what was left of the housing stock during the second half of the COVID pandemic.

A new report illustrates just how tight real estate became on the Front Range in the first years of the 2020s. Denver’s housing has rebounded faster than most cities through 2022 even though it still holds one of the lowest inventory levels.

Denver’s housing inventory grew 32.3% from the third quarter of 2021 to the third quarter of 2022, the 13th-highest increase among the 50 largest U.S. cities.

However, it has only 1.6 months of inventory on hand, which is the seventh-lowest of major cities.

Aurora ranked second – its housing inventory grew by 85% in the same time period. Like Denver, it also has only 1.6 months of inventory.

The growth in these two cities is in line with the state as Colorado has one of the quickest bounce-back rates for housing inventory.

However, unlike the Denver metro specifically, Colorado overall has one of the higher inventory levels.

Colorado’s housing inventory has grown 27.3% between the third quarters of 2021 and 2022. With 2.6 months of supply, it is tied with California, Illinois and Tennessee for the eighth-highest inventory levels.