The Housing Market in Westminster Today
The housing market in Westminster, Colorado reflects the city’s continued growth and appeal. Located northwest of Denver, Westminster offers a balanced suburban lifestyle with easy access to big city amenities. In recent years, the local housing inventory has tightened as more people discover Westminster’s high quality of life. New apartment complexes and housing developments are rising to meet the growing demand, especially in the revitalized downtown area.
Westminster’s housing costs remain relatively affordable compared to Denver proper, attracting a diverse mix of young professionals, growing families, and downsizing retirees. However, prices have been steadily climbing as the metro area’s population booms. Understanding the current cost landscape is essential for anyone considering a move to Westminster or evaluating their housing options.
Renting in Westminster: What’s Typical?
Renting remains a popular choice in Westminster, especially for younger residents and those who value flexibility. As of 2023, the average rent for a one-bedroom apartment in Westminster is around $1,600 per month. Upgrading to a two-bedroom unit will cost closer to $2,000 on average. These prices typically include basic utilities like water, sewer, and trash collection.
Westminster renters can find the most options and competitive prices in the city’s central neighborhoods, particularly along major corridors like Wadsworth Parkway and Federal Boulevard. Newer luxury complexes command higher rents but often include desirable amenities like covered parking, fitness centers, swimming pools, and dog parks. Renters can also find more affordable options in smaller buildings or subdivided houses.
Over the past decade, Westminster has seen consistent rent increases of 3-5% per year as the metro area’s population grows. While still more budget-friendly than central Denver, the rising costs have put pressure on local renters. Many are spending over 30% of their income on housing, exceeding the recommended budget threshold. As a result, some are looking to nearby towns like Arvada or Broomfield for better rental values.
Owning a Home in Westminster
For those with the means and long-term plans, buying a home in Westminster can be a smart investment. The median home price in Westminster currently hovers around $500,000, reflecting a competitive seller’s market. At this price point, buyers can expect to find a well-maintained three-bedroom, two-bathroom house with around 1,500 square feet of living space.
Assuming a 20% down payment and a 30-year fixed mortgage at 6.5% interest, the typical monthly payment for a $500,000 home would be around $2,500. However, Westminster homeowners must also budget for additional costs like property taxes (0.7% of assessed value), homeowners insurance ($1,200 per year on average), and private mortgage insurance (PMI) if putting less than 20% down. Many neighborhoods also have monthly Homeowners Association (HOA) dues ranging from $200-500 to cover community amenities and exterior maintenance.
While these costs can seem daunting, owning a home in Westminster offers long-term financial benefits. Homeowners can build equity over time, take advantage of tax deductions, and lock in a fixed monthly payment. Westminster’s strong job market and highly-rated schools also make it an attractive place to put down roots. However, saving for a down payment remains the biggest hurdle for many would-be buyers, especially as home prices continue to rise faster than wages.
Renters vs. Homeowners: Who Lives Where?
Westminster’s homeownership rate currently stands at 65%, slightly higher than the national average. This means that around two-thirds of households own their homes, while one-third rent. The ownership rate tends to be highest in the city’s more established neighborhoods with single-family homes, such as Countryside and Westcliff.
Renters are more concentrated in Westminster’s central core, where apartment complexes and multifamily housing are more common. Young professionals flock to newer buildings near the Westminster Station transit hub, which offers an easy commute to Denver. Families and retirees who rent often seek out townhomes or duplexes in quieter areas for more space and privacy.
The decision to rent or buy in Westminster often comes down to financial readiness and lifestyle preferences. Saving for a down payment is the main barrier to homeownership for many, especially for first-time buyers and those with student loan debt. Others simply prefer the flexibility and amenities of renting. As housing costs rise across the board, some are getting creative with arrangements like house hacking or multigenerational living.
| Expense | Renting (1BR) | Owning ($500K Home) |
|---|---|---|
| Monthly Rent/Mortgage | $1,600 | $2,500 |
| Property Tax | $0 | $300 |
| Homeowners/Renters Insurance | $15 | $100 |
| Utilities (Electric, Gas, Water) | $120 | $250 |
| HOA Dues | $0 | $300 |
| Total Monthly Cost | $1,735 | $3,450 |
Estimates reflect mid-range properties and average usage.
Here’s what typical housing costs might look like each month in Westminster:
As the table shows, owning a home in Westminster is significantly more expensive than renting on a monthly basis. However, these costs build long-term equity for homeowners, while renters don’t see a return on their monthly payments. The decision ultimately depends on your financial goals, timeline, and housing needs.
What’s Driving Westminster Housing Costs?
Several key factors are putting upward pressure on Westminster’s housing costs in both the rental and ownership markets. On the demand side, Westminster continues to attract new residents with its strong job market, highly-rated schools, and appealing quality of life. The Denver metro area is growing faster than most cities can build new housing, leading to tight inventory and competitive bidding.
On the supply side, Westminster faces many of the same construction constraints seen across Colorado. Strict zoning regulations, high labor and material costs, and limited land availability make it challenging to build enough new housing to meet demand, especially at attainable price points. While new apartment complexes and infill developments are helping to ease the shortage, they tend to target the luxury end of the market.
Other policy factors, like Colorado’s statewide limit on how much residential property taxes can increase each year, have kept some costs in check for homeowners. However, the state’s rapid population growth and thriving economy have made housing affordability an increasingly urgent concern. As policymakers grapple with solutions, Westminster residents are feeling the squeeze, with many spending a larger share of their income on housing than in years past.
FAQs About Housing in Westminster
- Is Westminster affordable to live in? While Westminster’s housing costs are lower than Denver proper, they have been rising steadily in recent years. Many residents spend over 30% of their income on rent or mortgage payments, which experts consider cost-burdened. Affordability depends on your income, housing needs, and budget.
- Why are housing prices changing? Westminster’s housing prices are rising due to strong demand, limited supply, and the growing Denver metro economy. Strict zoning rules and high construction costs have made it difficult to build enough new housing to keep up with population growth.
- How does Westminster compare to nearby cities? Westminster is generally more affordable than central Denver but pricier than outlying suburbs like Arvada or Thornton. It offers a balanced mix of urban amenities and suburban comfort, with easy light rail access to Denver.
Making Smart Housing Decisions in Westminster
Choosing whether to rent or buy a home in Westminster ultimately depends on your financial situation, lifestyle preferences, and long-term goals. Renting offers flexibility and predictable monthly costs, while owning builds equity and stability over time. As you weigh your options, consider creating a realistic monthly budget to determine what you can comfortably afford.
Keep in mind that housing is just one component of the overall cost of living in Westminster. Be sure to factor in additional expenses like transportation, groceries, healthcare, and entertainment when planning your move. By understanding the full financial picture, you can make an informed decision that aligns with your goals and values.
No matter which path you choose, Westminster offers a welcoming community and high quality of life for those lucky enough to call it home. By staying informed about local housing trends and planning ahead, you can navigate the market with confidence and find the perfect place to put down roots.