Prices Are Rising Wages Are Not

Dated: 04/04/2017

Views: 247

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

This home decor sale is a STEAL

Nothing is more fun than shopping for new items to perk up your Denver home! We do know that sometimes it can be expensive! Here is a great sale on home decor items! CLICK HEREStill don't own your

Read More

Don't miss out on this HOT property!

Just like new! This gorgeous townhome has everything you could ask for! Located just west of Denver University this home has quality and style to the max! Beautiful quartz countertops and a modern

Read More

Check out this AMAZING condo!

Don't miss this opportunity to live in one of Denver's most popular UPTOWN! This beautifully updated condo is a one bedroom.. right in the middle of the restaurants and shops on 17th Avenue in.

Read More

Should I Update my home before Selling???

I think one of the biggest questions when thinking about listing your home is "Should I Rennovate?" There are so many variables invovled and it can be overwhelming to say the least! I found this

Read More