The Housing Market in Centennial Today
Centennial, a thriving suburb southeast of Denver, has seen its housing market evolve in recent years. With a population nearing 110,000, demand for homes in this family-friendly city remains strong. However, inventory has tightened somewhat, especially for entry-level single-family homes. New apartment and townhome developments are rising to meet the needs of young professionals and downsizing seniors.
Despite some affordability challenges, Centennial continues to attract residents with its excellent schools, abundant parks and trails, and convenient access to the Denver Tech Center and other employment hubs. Home values have appreciated steadily, making homeownership a sound investment for those who can afford it. Meanwhile, a diverse rental market offers options for various budgets and lifestyles.
Renting in Centennial: What’s Typical?
As of 2023, the average rent for a one-bedroom apartment in Centennial is around $1,600 per month. Upgrading to a two-bedroom unit will cost about $2,000 on average. These prices put Centennial slightly above the national average but remain more affordable than central Denver.
Renters can find the best deals in older complexes and garden-style apartments on the city’s east side. Newer, amenity-rich developments command higher rents, especially those near the Denver Tech Center or along the I-25 corridor. Popular areas for renters include the neighborhoods around Cherry Knolls, Southglenn, and Foxridge.
Young professionals, small families, and empty nesters make up a significant portion of Centennial’s renter population. Many are attracted by the city’s strong job market, recreational amenities, and relative affordability compared to Denver proper. While rent increases have moderated recently, limited inventory and high demand are expected to keep prices elevated in the near term.
Owning a Home in Centennial
The median home price in Centennial currently stands at $550,000, reflecting a competitive market with limited inventory. For a typical buyer putting 10% down on a 30-year mortgage at 6.5% interest, this translates to a monthly payment of around $3,100 (excluding taxes and insurance). While steep, this remains more attainable than in Denver, where the median price exceeds $600,000.
In addition to mortgage costs, Centennial homeowners should budget for property taxes (0.7% of assessed value), homeowners insurance ($1,200-$2,000 annually), and potentially HOA dues ($200-$400 monthly, depending on property type and amenities). Maintenance and repair costs are also important factors, especially for older homes.
Despite these expenses, many residents view homeownership in Centennial as a worthwhile investment. The city’s strong economy, highly rated schools, and attractive quality of life have historically supported home value appreciation. Additionally, Colorado’s property tax laws help keep annual increases manageable for homeowners.
Renters vs. Homeowners: Who Lives Where?
Centennial’s homeownership rate stands at around 76%, higher than the national average of 64%. Single-family homes make up the bulk of the city’s housing stock, with concentrations of owner-occupied homes in established neighborhoods like Willow Creek, Walnut Hills, and Piney Creek.
Young professionals and smaller households tend to favor renting, often choosing apartments or townhomes near major employers or transportation corridors. On the other hand, families with children prioritize homeownership, seeking spacious homes in neighborhoods known for their excellent schools and family-friendly amenities.
For some residents, the financial barriers to homeownership can be significant. Rising prices, limited starter-home inventory, and stricter lending standards post-2008 have made the leap to ownership more challenging. Centennial’s higher median income ($109,000) helps offset these hurdles, but saving for a down payment remains a multi-year process for many.
| Expense | Apartment (1BR) | House (3BR) |
|---|---|---|
| Rent/Mortgage | $1,600 | $3,100 |
| Property Tax | – | $320 |
| Utilities | $120 | $280 |
| Insurance | $15 | $150 |
| HOA Dues | $200 | $250 |
| Total | $1,935 | $4,100 |
Estimates reflect mid-range properties and average usage.
Here’s what housing costs might look like each month in Centennial:
What’s Driving Costs Up or Down?
Several factors influence housing affordability in Centennial. On the demand side, the city’s strong job market, highly rated schools, and appealing suburban lifestyle continue to attract new residents. This puts upward pressure on prices, especially for single-family homes.
In terms of supply, Centennial is largely built out, with limited land available for new housing developments. This constraint, combined with rising construction costs and labor shortages, has slowed the pace of new home construction. Infill projects and higher-density developments offer some relief but are unlikely to fully meet demand.
Zoning changes that allow for accessory dwelling units (ADUs) and more mixed-use projects could help improve affordability over time. However, any shifts are likely to be gradual, as existing single-family neighborhoods remain resistant to density. Overall, the balance between supply and demand suggests that housing costs in Centennial will remain elevated in the near to medium term.
FAQs About Housing in Centennial
Is Centennial affordable to live in?
While Centennial is more affordable than central Denver, it remains relatively expensive compared to the national average. Housing costs are the primary driver, with both rents and home prices exceeding U.S. medians. However, Centennial’s high median income helps offset these costs for many residents.
Why are housing prices changing?
Housing prices in Centennial are influenced by a combination of strong demand, limited supply, and rising construction costs. The city’s attractive quality of life and robust job market continue to draw new residents, putting upward pressure on prices. At the same time, a shortage of developable land and increasing labor and material costs have constrained new housing supply.
How does Centennial compare to nearby cities?
Centennial is generally more affordable than Denver proper, with lower median rents and home prices. However, it remains pricier than some neighboring suburbs like Aurora and Littleton. Compared to similar high-income suburbs like Highlands Ranch and Parker, Centennial offers a comparable cost of living and quality of life.
Making Smart Housing Decisions in Centennial
For those considering a move to Centennial, understanding the local housing market is crucial. Renters should budget for monthly costs beyond just rent, including utilities, insurance, and potential HOA fees. Prospective buyers must account for property taxes, maintenance expenses, and the long-term costs of homeownership.
Ultimately, the decision between renting and owning depends on individual financial circumstances, lifestyle preferences, and long-term goals. Consulting with a local real estate professional can provide valuable insights into neighborhood-specific trends and help guide your housing choice.
By carefully weighing the costs and benefits of different housing options, residents can make informed decisions that support their financial well-being and overall quality of life in Centennial. For more information, check out our guides on Monthly Budget Examples for Centennial Residents and Cost of Living in Centennial (2025 Guide).