Prices Are Rising Wages Are Not

Dated: April 4 2017

Views: 279

Patrick Holwell, workforce economist for Arapahoe/Douglas Works, said there's a gap between home prices and incomes in the region, and that gap is widening.
Image title
“People who aspire to own a home are looking at it going steadily out of their reach,” Holwell said. “Their income isn't growing as fast as home prices.”

In January, the median sales price of a single-family home in the metro area was $380,000, up 10 percent from a year ago, according to DMAR.

According to data Holwell compiled from the U.S. Census Bureau, a growing number of potential buyers across the region can't afford a new home.

Prices are out of range for at least 205,000 households in Denver. In Jefferson County, a minimum of 150,891households are stuck where they are. At least 98,903 Adams County households and 134,818 Arapahoe County households are priced out, while Douglas County had at least 50,714 households not making enough to buy a home.

Robert Smith, Lakewood's economic development director, said the cost burden of owning or renting in today's market has consequences that ripple through the local economy. More income spent on rent or mortgage payments means less money for eating out, shopping and other discretionary spending.

"Cost burden affects not only an individual household’s quality of life," Smith said via email. It "also affects the business community that depends on their spending."

Another strain on the household budget is money spent on gas and bus fare.

"Households that do buy in this market are forced either to enter a cost-burdened situation or find less expensive housing farther from their place of work," Smith said, "which in turn leads to greater spending on transportation."




Denver Colorado Real Estate Professional
 -Michael Steffen

Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; DenverArvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! For help with buying or selling a property call 303-981-2750!

eNewsletter Sign Up

Blog author image

Generation Property Group

My name is Michael Ross Steffen. I’m an Exit Realty Cherry Creek Agent in the Denver metro area and Team Leader For Generation Property Group! We specialize in advanced Internet marketing, buying, s....

Latest Blog Posts

Should I Sell My Home in the Winter???

Is selling your home in the Winter a good idea? With interest rates keeping consitently low, buyers are more inclinded to buy reguardless of the season. Most people think the best time to sell is

Read More

Get Those Bugs Off My Tree!!!!!

One of the best parts about Christmas at Generation Property Group is going on the hunt for the perfect LIVE Christmas tree.We have the best memories of strapping a tree to the top of our subaru and

Read More

Who doesn't love Christmas Lights?!

One thing we've learned about 2020 is to be creative with activties! While a lot has changed in our daily lives, we have used our creativity to plan healthy and safe things to do while social

Read More

Make Ahead Thanksgiving Recipes!

We know 2020 has been a CRAZY year! Here are some easy make ahead Thanksgiving recipies to help make this year's Thanksgiving a little less crazy! Test out one of these RECIEPIES in your new Denver

Read More