For many Colorado residents, owning a second home is more than a financial decision. It is a lifestyle vision. A mountain escape. A place to create family memories. A rental income opportunity that helps offset ownership costs. And in some cases, it is a long-term investment strategy built around Colorado’s strong tourism and limited supply of mountain properties.
As a Denver real estate team that frequently works with clients buying both locally and outside Colorado, I created this comprehensive guide to help you understand the options, costs, rental potential, and the exact markets that work best for second-home buyers.
If you find yourself dreaming of your own getaway, this guide is the perfect starting point. And if you ever explore buying beyond Colorado, I have trusted partners nationwide and can help connect you with top-tier agents in any market.
How to Choose the Right Second Home Market
Before diving into cities and mountain towns, here are the key factors you should consider:
Drive Time and Accessibility
How often will you realistically use your second home?
Do you want a quick two-hour escape or a remote adventure?
Your Budget
Second home markets range from 500k for a small mountain condo to tens of millions for Aspen luxury estates.
Short Term Rental Goals
Not all markets allow unrestricted Airbnb or VRBO rentals. Each market below includes a rental rules summary.
Lifestyle Fit
Do you want ski access, lake access, golf, off-grid living, small town charm, or a luxury resort experience?
Seasonality
Some markets perform exceptionally well year-round, others depend heavily on ski season or summer tourists.
Resale & Appreciation Potential
Mountain towns have historically shown strong long-term appreciation due to tight inventory and tourism demand.
Financing, Taxes, and Cost of Ownership
Buying a second home is not the same as buying a primary residence.
Down Payment and Rates
Second homes usually require:
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10 to 20 percent down
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Slightly higher interest rates
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Stronger income verification
Investment Property Classification
If your primary goal is rental income, the home may be treated as an investment property, which changes lending rules.
Ongoing Costs
Plan for:
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Furnishing
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Property management fees (20 to 35 percent on rentals)
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Insurance
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Utilities
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HOA or metro district fees
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Snow removal
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Local lodging taxes
Rental Taxes and Licensing
Colorado mountain towns treat STRs like a business. Licensing and lodging taxes apply.
Top Colorado Second Home Markets
Below is a breakdown of the strongest and most in-demand second-home markets in Colorado. Each includes lifestyle, rental aspects, and pricing.
1. Summit County: Breckenridge, Frisco, Dillon, Silverthorne, Keystone
Why locals buy here
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Closest major ski county to Denver
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Consistent year-round tourism
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Strong rental numbers
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Downtown Breck and Frisco offer great walkability
Drive time
1 to 1.5 hours (without traffic)
Rental Viability
Excellent, but with strict licensing in Breckenridge and Frisco. Keystone has more STR flexibility.
Price Ranges
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Condos: 550k to 1.5M
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Homes: 1.2M to 4M plus
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Luxury estates: 4M to 10M
Pros
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Strong rental income potential
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Close to Denver
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Great for families
Cons
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Traffic on I-70
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Competition for inventory
2. Vail Valley: Vail, Beaver Creek, Avon, Edwards, Eagle
Lifestyle
Upscale, resort-driven, high-end dining and amenities.
Rental Viability
Very strong, especially for Vail Village and Lionshead, though licensing varies.
Price Ranges
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Condos: 800k to 2M
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Homes: 1.5M to 6M plus
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Luxury: 10M to 40M
Best For
Buyers seeking luxury, walkability, and top-tier appreciation.
3. Steamboat Springs
Lifestyle
Ski resort plus strong summer tourism, hot springs, ranch land, biking culture.
Rental
Excellent year-round occupancy and STR-friendly areas.
Pricing
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Condos: 600k to 1.5M
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Homes: 1.4M to 3.5M
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Luxury ranch properties available
Pros
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Balanced winter and summer tourism
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Less crowded than Summit and Vail
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Strong appreciation
4. Winter Park and Fraser
Lifestyle
Family-friendly, more affordable compared to other ski towns, growing rapidly.
Rental Viability
High. The town is STR-friendly.
Price Ranges
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Condos: 400k to 900k
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Homes: 800k to 2M
Pros
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Strong affordability
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Great for Denver weekenders
Potential Drawback
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Less high-end dining and retail compared to Vail/Aspen
5. Grand Lake
Lifestyle
Lakefront charm, boating, snowmobiling, small-town Colorado.
Rental
Highly seasonal, strong summer performance.
Pricing
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Cabins: 450k to 1M
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Homes: 700k to 2M
6. Durango and Purgatory
Lifestyle
Western charm, train tourism, mountain terrain, and summer appeal.
Rental
Excellent balance year-round.
Pricing
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Condos: 450k to 1.2M
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Homes: 700k to 2M plus
7. Crested Butte
Lifestyle
Boutique ski town, dramatic scenery, arts and mountain culture.
Rental
Strong but dependent on ski and summer peak seasons.
Pricing
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Condos: 550k to 1.5M
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Homes: 1.2M to 4M plus
8. Aspen and Snowmass
Lifestyle
Ultra luxury, international buyers, pristine mountain experience.
Pricing
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Condos: 2M to 6M
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Homes: 5M to 40M plus
Rental
Strong luxury demand but specialized.
Honorable Mention Markets (non-ski or under the radar)
These are markets that Denver families love but many don’t initially consider:
Buena Vista
Hot springs, mountain views, excellent summer tourism.
Salida
River downtown, artist community, strong appreciation.
Leadville
Affordable, Colorado’s highest town, growing popularity.
Pagosa Springs
Hot springs, Purgatory access, lower pricing.
Westcliffe
Open spaces, privacy, dark skies for stargazing.
Red Feather Lakes
Cabin vibes, fishing lakes, affordability.
Glenwood Springs and Carbondale
Proximity to Aspen without Aspen prices.
Paonia and Hotchkiss
Wine region, slower pace, creative community.
Bonus: Out-of-State Second-Home Markets Colorado Buyers Love
These produce excellent referrals for you:
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Scottsdale
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Palm Springs
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Naples and Sarasota
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Austin Hill Country
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Whitefish, Montana
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Lake Tahoe
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Park City
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Nashville suburbs
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Charleston and Hilton Head
If any of these appeal, I can easily connect you with the best agents in those markets.
How I Can Help You Get Started
Whether you are considering a mountain condo, a lakefront retreat, a ski-in home, or an out-of-state lifestyle property, I help Colorado residents:
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Understand rental potential
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Identify markets that fit their lifestyle
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Compare ski vs. non-ski appreciation
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Connect with top agents statewide and nationwide
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Evaluate financing
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Build long-term ownership plans
If you want to explore a second home in or outside Colorado, I’m happy to navigate the process and provide expert referrals.
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