Over the past five years, Aspen's real estate market has transformed from a pandemic-driven buying spree to a more measured, high-end investment landscape. Demand for ultra-luxury properties remains strong, but the market has begun to stabilize, with price growth moderating and sales cycles lengthening. Despite these shifts, Aspen remains one of the country's most competitive and sought-after luxury real estate markets.
As we enter 2025, looking at long-term trends provides insight into how Aspen's real estate market has evolved and what lies ahead.
The Ultra-Luxury Boom
Since 2020, Aspen's home prices have skyrocketed, increasing by nearly three times their pre-pandemic levels. The influx of high-net-worth buyers seeking privacy and access to the outdoors drove demand to unprecedented levels, pushing Aspen into an entirely new pricing tier.
Single-family home prices peaked at a median of $13.4 million in 2024, stabilizing after a 14% decline in 2023, which followed the record-breaking growth from 2020 to 2022. Meanwhile, the condo market remained strong, with prices rising 5% to a median of $2.85 million in 2024. Overall, the price per square foot has increased from between 4% and 7% annually, ensuring steady appreciation across all property types.
In that time, Aspen's ultra-luxury sector grew even more prominent. In 2024, 40% of active listings exceeded $4,000 per square foot, a price point once reserved for only the most opulent properties. Sales exceeding $5,000 per square foot are now commonplace. High-profile transactions have set new benchmarks, including sales of $108 million, $77 million, and $67 million in 2024. In the decade prior to 2020, only 11 properties had sold for more than $25 million. In the past 12 months, there have been 20 such sales, illustrating how dramatically the market has shifted.
With so much demand concentrated in the highest price brackets, Aspen established itself as one of the world's premier ultra-luxury real estate markets over the past five years.
Single-family home prices peaked at a median of $13.4 million in 2024, stabilizing after a 14% decline in 2023, which followed the record-breaking growth from 2020 to 2022. Meanwhile, the condo market remained strong, with prices rising 5% to a median of $2.85 million in 2024. Overall, the price per square foot has increased from between 4% and 7% annually, ensuring steady appreciation across all property types.
In that time, Aspen's ultra-luxury sector grew even more prominent. In 2024, 40% of active listings exceeded $4,000 per square foot, a price point once reserved for only the most opulent properties. Sales exceeding $5,000 per square foot are now commonplace. High-profile transactions have set new benchmarks, including sales of $108 million, $77 million, and $67 million in 2024. In the decade prior to 2020, only 11 properties had sold for more than $25 million. In the past 12 months, there have been 20 such sales, illustrating how dramatically the market has shifted.
With so much demand concentrated in the highest price brackets, Aspen established itself as one of the world's premier ultra-luxury real estate markets over the past five years.
Sales and Inventory Trends
While home values have held steady, Aspen's real estate market is adjusting to slower sales activity and slightly increased inventory.
Total home sales increased 3% in 2024, signaling a return to normal activity levels following the pandemic buying surge. However, the total dollar sales volume dropped by 3%.
Sales of single-family homes in 2024 declined by 12%, primarily due to a lack of inventory. Similarly, condo sales fell 9%, with Aspen's strict short-term rental regulations playing a role in slowing that segment of the market.
Inventory rose slightly, up 4% from 2023, providing more options for buyers. However, the market remains tight compared to historical trends, ensuring that well-priced properties in prime locations continue to move.
Despite these adjustments, Aspen still strongly favors sellers, particularly in the luxury sector. High demand and limited availability mean properties in prime locations continue attracting competitive offers.
Total home sales increased 3% in 2024, signaling a return to normal activity levels following the pandemic buying surge. However, the total dollar sales volume dropped by 3%.
Sales of single-family homes in 2024 declined by 12%, primarily due to a lack of inventory. Similarly, condo sales fell 9%, with Aspen's strict short-term rental regulations playing a role in slowing that segment of the market.
Inventory rose slightly, up 4% from 2023, providing more options for buyers. However, the market remains tight compared to historical trends, ensuring that well-priced properties in prime locations continue to move.
Despite these adjustments, Aspen still strongly favors sellers, particularly in the luxury sector. High demand and limited availability mean properties in prime locations continue attracting competitive offers.
Impact of Short-Term Rental Regulations
Aspen's condo market, once a favorite among investors, has shifted significantly since the arrival of short-term rental (STR) restrictions in 2022. These regulations imposed substantial taxes on STR properties, making investment properties less attractive in certain areas.
Condos now face three different STR tax brackets based on ownership and rental type. Traditional lodge properties are taxed at 11.3%, while owner-occupied and lodge-exempt properties face a 16.3% tax. Investment properties and second homes bear the highest burden at 21.3%, discouraging short-term rental investors.
As a result, many property owners have opted for long-term leases to avoid these high STR taxes. Condos that fall under STR restrictions have been slower to appreciate unless they offer exceptional features such as riverfront access, penthouse views, or ski-in/ski-out privileges. Conversely, properties in Aspen's designated Lodge Zone, which are exempt from STR regulations, have outperformed the broader condo market.
This divide has led to a reevaluation in investment strategy, with more buyers gravitating toward STR-friendly properties while a smaller segment focuses on long-term rental opportunities.
Condos now face three different STR tax brackets based on ownership and rental type. Traditional lodge properties are taxed at 11.3%, while owner-occupied and lodge-exempt properties face a 16.3% tax. Investment properties and second homes bear the highest burden at 21.3%, discouraging short-term rental investors.
As a result, many property owners have opted for long-term leases to avoid these high STR taxes. Condos that fall under STR restrictions have been slower to appreciate unless they offer exceptional features such as riverfront access, penthouse views, or ski-in/ski-out privileges. Conversely, properties in Aspen's designated Lodge Zone, which are exempt from STR regulations, have outperformed the broader condo market.
This divide has led to a reevaluation in investment strategy, with more buyers gravitating toward STR-friendly properties while a smaller segment focuses on long-term rental opportunities.
Influence of Off-Market Sales
A significant portion of Aspen's highest-end real estate transactions now occur off-market, further pushing up prices in the ultra-luxury segment.
Of Aspen's current listings, nearly half are priced above $15 million, while roughly 15% surpass the $30 million mark. Many of these transactions happen privately, with high-net-worth buyers preferring discretion.
These exclusive deals fuel market appreciation at the top end, with more properties closing far above historical norms. Ultra-luxury homes remain Aspen's most competitive segment.
Of Aspen's current listings, nearly half are priced above $15 million, while roughly 15% surpass the $30 million mark. Many of these transactions happen privately, with high-net-worth buyers preferring discretion.
These exclusive deals fuel market appreciation at the top end, with more properties closing far above historical norms. Ultra-luxury homes remain Aspen's most competitive segment.
Development Constraints
Aspen's zoning restrictions have long limited new development, but those constraints have become even stricter in recent years.
The city only grants six demolition permits annually, determined through a lottery system. The dearth of permits—Pitkin County is expected to introduce similar zoning rules in late 2025—further discouraging large-scale redevelopment. As a result, residential inventory is shifting toward adaptive reuse, with buyers seeking modern luxury homes that are newly renovated properties or primed for renovation.
With so little available land for development, property values will likely continue rising, particularly for homes that have already been fully updated and modernized.
The city only grants six demolition permits annually, determined through a lottery system. The dearth of permits—Pitkin County is expected to introduce similar zoning rules in late 2025—further discouraging large-scale redevelopment. As a result, residential inventory is shifting toward adaptive reuse, with buyers seeking modern luxury homes that are newly renovated properties or primed for renovation.
With so little available land for development, property values will likely continue rising, particularly for homes that have already been fully updated and modernized.
What's Next for Aspen's Market in 2025?
Heading into 2025, Aspen's real estate market is expected to remain strong but continue stabilizing after years of rapid growth.
Home prices will likely increase at a more moderate rate, around 3% to 5% annually. The ultra-luxury sector will remain highly competitive but expect days-on-market to rise as buyers take more time to make decisions. Limited inventory will keep competition high, particularly for newly built or fully renovated homes in prime locations.
Investment properties will face continued challenges, with Aspen's STR tax policies continuing to influence the condo market. Long-term rentals, however, remain a stable and attractive option for investors looking for steady returns.
While Aspen's real estate market has cooled slightly from its peak, it remains one of the world's most exclusive and resilient real estate markets.
Home prices will likely increase at a more moderate rate, around 3% to 5% annually. The ultra-luxury sector will remain highly competitive but expect days-on-market to rise as buyers take more time to make decisions. Limited inventory will keep competition high, particularly for newly built or fully renovated homes in prime locations.
Investment properties will face continued challenges, with Aspen's STR tax policies continuing to influence the condo market. Long-term rentals, however, remain a stable and attractive option for investors looking for steady returns.
While Aspen's real estate market has cooled slightly from its peak, it remains one of the world's most exclusive and resilient real estate markets.
Explore Aspen's Luxury Real Estate Market with a Trusted Local Expert
The past five years have transformed Aspen's real estate landscape. What was once a fast-moving, high-demand market has become a more strategic, investment-driven space, where luxury buyers are more selective, and properties take longer to sell.
Despite these adjustments, Aspen's limited development opportunities, consistent demand, and high-net-worth buyer base ensure that it remains one of the strongest real estate markets heading into 2025 and beyond, with opportunities for buyers and sellers. Regardless of which side of the high-end transaction you find yourself, if you're ready to delve further into Aspen's celebrated luxury real estate market, contact Brittanie Rockhill today to start your real estate journey.
Despite these adjustments, Aspen's limited development opportunities, consistent demand, and high-net-worth buyer base ensure that it remains one of the strongest real estate markets heading into 2025 and beyond, with opportunities for buyers and sellers. Regardless of which side of the high-end transaction you find yourself, if you're ready to delve further into Aspen's celebrated luxury real estate market, contact Brittanie Rockhill today to start your real estate journey.
