It was once at the heart of America's real estate boom - but the city's housing market now faces a complete collapse as residents attempt to flee.

The number of homes for sale in Denver has soared to a decade-high, with inventory now 99.6 percent above the long-term average, according to analyst Nick Gerli.

Gerli described the situation as 'unprecedented.' 'No other major city in America is seeing this kind of inventory explosion,' he wrote on X.

High mortgage rates, expensive insurance premiums, and a shaky market are all contributing factors to the flood of new listings. Some sellers are so desperate to move homes they are offering crazy concessions to potential buyers.

There were 10,345 listings on the market in Denver in April 2025, compared to 5,158 in April 2024, according to the Denver Metro Association of Realtors.

'Values in Denver are now dropping on a monthly basis, and could drop significantly over the rest of 2025 if this inventory spike holds,' Gerli wrote.

He forecasts home values in the city will drop 9.1 percent over the next 12 months.  

Home values in Denver are now dropping on a monthly basis

It comes as experts have warned that South Florida and housing markets in Texas - particularly Austin - may also be heading for a crash in 2025.

The surplus of inventory in Denver has local realtors worried, because buyers aren't biting.

'The shift went from a pandemic boom, to reasonable and steady with buyer confidence, to an increase in new listings which are mainly from sellers who held off in an uncertain market with high interest rates and political change,' local Denver realtor Chris Thompson told the Daily Mail.

'Home sellers who have waited to see what would happen have realized this is the new normal, and we aren't going back to pandemic market where we saw historically low levels of inventory and low mortgage rates.'

Denver's average home price is $593,000, with monthly payments topping $3,700 and pricing many people out.

For years, many Californians flocked to Denver, seeking an affordable place to call home. But they ended up crowding the area and driving prices up instead.

'Denver's job market and migration are cooling,' Gerli wrote on X. 'The market's just not what it was.'

Despite the surge in listings, the rate at which prices are dropping is too slow, meaning inventory is rising fast, but demand isn't catching up.

Home sellers are realizing that the city is not going back to its pandemic market, said local realtor Chris Thompson

Denver realtor Chris Thompson has this home listed and hopes to see it sell

The job market and migration are cooling in Denver (Pictured: Downtown)

Denver was once at the heart of America's real estate boom

'Home sellers are seeing higher interest rates, and so homes are coming more frequently to market, but home buyers have remained lower for the same reason,' Thompson said.

If more and more houses continue to hit the market and sit there, Denver is at risk of a crash - much like South Florida. 

'Interest rates and uncertainty in the US economy with fears of an upcoming recession have led to Denver home buyers being more cautious,' said Thompson. 

'Rising inventory does mean more options and additional leverage for buyers. This has resulted in home prices softening compared to pandemic prices.'

Thompson said there is a silver lining though.

'The good news is that homes which are priced well, are turn-key and marketed correctly are still moving quickly,' he said.

'However, the average listing has seen longer days on market, and more concessions for buyers and/or price reductions due to the increased number of new listings.'

He predicts savvy buyers have and will continue to have more options in the short term, and if interest rates move lower, we will see a buying surge again.