Denver’s downtown is emptying, but home prices just outside are surging past pre-pandemic peaks

Homes in Cherry Creek and Washington Park are going under contract in under three weeks, with prices in the latter neighborhood up 47.4% since 2019—reaching a median listing price of $2.1 million in March. In Cherry Creek, the median price hit $1.4 million, a 37.2% increase from pre-pandemic levels. This surge is occurring even as Denver’s overall median listing price remains nearly unchanged at $537,000. The shift reflects a broader realignment in where people want to live, work, and spend their time.

Downtown Denver’s office vacancy rate reached 38% by the end of 2025, with over one in three buildings sitting empty. Employers like TIAA, which relocated 1,000 jobs to Texas, and Xcel Energy, which moved out of downtown entirely, have pulled back significantly. That exodus has dampened demand for downtown housing, where the residential market has weakened.

The 16th Street Mall reconstruction, launched in 2022, further stalled downtown’s recovery, disrupting foot traffic and commerce just as businesses were rebounding. At the same time, the expansion of the RTD Light Rail network has made it easier for residents to live outside the core while still accessing downtown when needed.

Higher interest rates after 2022 also played a role, increasing the cost of capital and reducing the value of office buildings purchased before the rate hikes. That financial pressure has compounded occupancy and rental income challenges for property owners.

But on the edges of downtown, the story is different. Cherry Creek has maintained low office vacancy and drawn businesses relocating from the core, fueling demand for nearby housing. The neighborhood offers walkability, high-end shopping, restaurants, and art galleries—what one agent likened to Chicago’s Lincoln Park—while preserving a lower-density, residential feel.

Washington Park, just south of Cherry Creek, is anchored by one of the city’s most popular parks, with lakes, recreation facilities, and miles of trails. Its historic homes, architectural details, and proximity to local dining have made it a magnet for buyers seeking vibrant urban living without downtown’s emptiness.

Residential homes in Cherry Creek are expected to appreciate at least another 5% in 2025, continuing a trend of price stability and competition even as the broader market cools.