Is Owning A Home In Colorado An Impossible Dream?
A recent report from one of the premier property databases in the country says it may be more difficult now to get a home than ever.
ATTOM Data Solutions recently released a study concerning home affordability and income levels and the news is not good in Colorado. The counties researched in Colorado were Adams, Jefferson, Douglas, Atrapahoe, Denver, Boulder, Larimer, Mesa, Weld, El Paso and Pueblo. Out of these counties only one, Pueblo showed the median income and home affordability to be compatible. In all other counties, including Mesa County, it was determined that home costs are too high for most wage earners.
304 out of 446 U.S. counties, or around 68% of those counties are showing the inability to afford a home based on their wages. That is still better than the 91% in the State of Colorado.
The determination was made based on how much income would be necessary to make monthly mortgage payments. And if that amount was more than 28% of the total income, it was deemed unaffordable.
In Mesa County, you need an average income of $56,313 to afford a home with three percent down and 28% payment. What that means is the price of homes locally will soon be too high for most people to afford on their salary.
The other issue is the average wage increase in Mesa County is 2%, and the average increase in home prices is 11%. As long as home valuation keeps increasing and wages do not keep pace we will continue to see homes move further and further from the reach of the average Coloradan.
Here's hoping this trend starts to see a reversal soon.