Custer County, Colorado Housing Market

📝 Local Market Notes

Custer County, Colorado, exhibits characteristics of a balanced market leaning slightly toward buyers, driven by robust income levels relative to state averages. The median household income of $72,674 exceeds the national average by 6.9%, providing a stronger financial foundation for local residents compared to the broader U.S. population. However, the price-to-income ratio stands at 5.40, significantly higher than the national benchmark of 3.20, indicating that home prices have outpaced local earnings growth. Conversely, the rent burden is 17.7%, nearly identical to the national average of 17.2%, suggesting that rental costs remain proportionate to income. This divergence highlights that while homeownership is increasingly expensive relative to local wages, the rental sector remains stable and accessible. The high owner-occupancy rate of 85.3% further underscores the community’s preference for equity over tenancy, a trait common in rural and semi-rural Colorado counties. Trend analysis reveals a volatile but ultimately upward trajectory in home values. After a sharp 11.4% decline in 2020, prices surged 24.5% in 2022 and have continued to grow at a moderate 9.3% in 2024. This recent acceleration contrasts with the FHFA House Price Index, which reports a 9.98% year-over-year decline in 2025, significantly underperforming the state’s -0.61% change. This discrepancy suggests that recent mortgage transaction data may reflect a lag or specific market segment shifts not captured by the Census estimates. Meanwhile, the price-to-rent ratio of 30.6 is substantially higher than the national average of 18.7, indicating that buying is currently less attractive than renting on a pure cost-of-entry basis, despite the strong income levels. The local economic context is shaped by low employment volume and constrained supply. With only 767 total jobs and an average weekly wage of $914, the labor market is small, yet net migration of +475 filers between 2021 and 2022 demonstrates sustained demographic inflow. Inflowing residents earn an average of $86,682, higher than outflowing residents at $84,488, suggesting an influx of higher-earning individuals. Housing supply remains tight, with 78 new single-family units authorized in 2025 and zero multi-family construction, limiting inventory expansion. At a national 30-year fixed mortgage rate of 7.40%, financing costs remain elevated, further pressuring affordability. Potential buyers should note that while incomes are strong, the combination of high price-to-income ratios and limited new supply creates a competitive environment. Renters may find more stability, as rental costs align closely with national norms, offering a lower barrier to entry in this high-value market segment.

Based on U.S. Census ACS 2024 5-Year Estimates.