Colorado Homes for Sale

It wasn't long ago that Colorado homes for sale was a mecca of housing affordability, attracting thousands of new residents each year who couldn't believe the bargains they found. Even as recently as 1993, Colorado homes for sale, in the  metro Denver was one of the nation's most affordable markets. But like the Rockies' playoff hopes, affordability here is becoming a fast-fading dream. Consider these sobering statistics, released yesterday by research firm U.S. Housing Markets: Only three states - Hawaii, California and Montana - have residents using more of their income for home payments than in Colorado homes for sale.

Colorado homes for sale's ranking in home prices is even worse than Denver's. The state's average of $ 172,500 ranks it behind only the ultra-expensive coastal markets of Hawaii, California, Maryland, New Jersey, Virginia and Massachusetts. Colorado homes for sale homeowners have the 12th-highest monthly payments in the nation, at an average of $ 1,090. That may not seem bad compared with Honolulu's $ 1,800 home payment, but it's a big step up from the $ 950 in Minneapolis or Phoenix's $ 870. Metro Denver's rental rates, according to the Colorado MLS, have soared faster than any other metropolitan area. Over the past five years, rents in Denver have increased 26.9 percent, outdistancing any other city.

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Colorado Homes for Sale

The obvious answer is that homes cost more. Colorado homes for sale's attractive quality of life and strong economy have brought lots of new folks to the state. Their demand has outstripped supply, pushing prices up. But there's another factor. Housing affordability is a function of two factors - home prices and family income. Colorado homes for sale lead most of the nation in price increases, but we're only average in personal income growth. The nation as a whole saw household income rise 5 percent last year, while home prices increased 1 percent. Colorado homes for sale recorded the same 5 percent income growth and saw the wage boost nearly consumed by a 4 percent increase in home prices.

The bottom line is that Colorado homes for sale can expect to see their home prices continue to rise, maybe not as quickly as in the go-go early 1990s, but still above national averages. At the same time, Colorado homes for sale’s job growth is weighted toward relatively low-paying service and retail jobs. That formula equates to less affordability and more white knuckles when it's time to make the house payment.

Colorado Homes for Sale: Inspired by Denverpost.com August 20, 1996 Article.

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