For many approaching retirement, financial security and lifestyle freedom go hand in hand. In Colorado, where housing appreciation remains strong and lifestyle amenities are abundant, a second home can serve both purposes. Beyond offering a mountain retreat or city pied-à-terre, a second home may be the missing piece in a well-rounded retirement strategy.
Equity Growth: Colorado’s Strong Track Record
Homeownership has long been one of the most reliable ways to build wealth, and Colorado has consistently outperformed national averages. Consider these trends:
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Denver home values rose 70% between 2012 and 2019.
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During the pandemic years, values surged another 35% between 2020 and 2023.
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Even in a more balanced 2025 market, population growth of 1.2% annually through 2030 supports steady demand.
This history suggests that a second home purchased today could provide significant equity growth by the time you reach or advance through retirement.
Rental Income Potential
Second homes in Colorado can double as income-generating properties. A Breckenridge condo might be rented to vacationers, while a Denver condo near cultural attractions could attract long-term tenants. With average Denver two-bedroom rents at $2,200 per month in 2025, rental income can offset mortgage costs and create cash flow during retirement years.
For retirees seeking flexibility, short-term rentals can provide seasonal income while still allowing personal use of the property.
Diversification and Inflation Protection
Adding a second home to your financial portfolio offers diversification beyond stocks and bonds. Real estate acts as a tangible asset that typically appreciates over time while serving as a hedge against inflation. In periods of rising costs, property values and rents often increase, protecting purchasing power.
Practical Considerations
Of course, second homes come with responsibilities. Retirees should factor in:
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Maintenance and Repairs: Mountain properties may face higher upkeep due to weather.
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HOA Fees: Condos and townhomes often include dues that cover exterior maintenance and amenities.
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Property Management: For those not living locally year-round, professional management ensures the home remains cared for and rental-ready.
Typical property management fees in Colorado range from 8% to 10% of monthly rental income—a worthwhile cost for retirees seeking a hands-off approach.
Lifestyle Meets Strategy
While the financial benefits are compelling, the lifestyle perks shouldn’t be overlooked. A second home in Colorado offers built-in opportunities for relaxation and recreation, from skiing and hiking to cultural events and dining. Retirement is about more than financial stability—it’s also about enjoying the freedom you’ve earned.
When Selling May Be the Better Option
In some cases, selling an existing property to fund retirement goals may make more sense than holding multiple homes. For homeowners sitting on significant equity—averaging $275,000 in Denver as of 2025—liquidating assets can provide liquidity for investments, travel, or healthcare needs. The decision depends on whether ongoing rental management or lifestyle use outweighs the simplicity of selling.
Final Thoughts
A second home in Colorado is not just a luxury—it can be a strategic asset in retirement planning. With strong equity growth, potential rental income, and diversification benefits, real estate offers retirees both financial security and lifestyle enjoyment. At Corken + Company, we help clients evaluate whether buying, renting, or selling aligns best with their long-term retirement goals. Visit www.corken.co or call 303-858-8003 to explore your options.
