Affordable Housing Options in Denver Metro (Aurora, Lakewood: best neighborhoods, for sale, apartments)

[Z3N1TH 0N3]

Where are some good places to look for affordable housing, but in a safe, decent neighborhood? Denver incomes seem pretty low relative to housing values. So I'm interested in knowing how people have purchased their first homes.

It seems like housing is pretty expensive in Denver Metro. One of my older friends lives in Thornton. He has a three bedroom ranch-style house, maybe a tad above a starter home IMO, and he said it appraised at $210,000. I was using a mortgage calculator to determine monthly payments on a mortgage around $200,000, and I was looking anywhere between $1600 - $2000 / month payments.

Most houses I have seen for sale, either in Denver and in the burbs, seem to go for $200k+. Is this pretty much the norm for housing in Denver Metro? I feel like you need to make a pretty good living or have dual incomes to live anywhere around the metro, particularly in a safe area.

The problem with Denver Metro, unlike a LA Metro or a Chicago Metro, is that incomes are relatively low here. I'm curious how others have gone about purchasing their homes here, particularly those who are young and single. Did you start out with a cond/town home? Were there certain areas that you looked in that are relatively cheap albeit safe?

[2bindenver]

First, I think your calculations are off. You can buy a $200,000 home for 3.5% down and you payments are more like $950 P & I (principal and interest) payment. Adding taxes and insurance maybe another $150-$200 a month.

If you have a steady job and excellent credit, you can get a townhome or condo for less. I just sold a 1 bed condo near Hampden & Tamarac for $62,500 - payments (PITIH) with HOA less than $745.

[Z3N1TH 0N3]

Originally Posted by 2bindenver

First, I think your calculations are off. You can buy a $200,000 home for 3.5% down and you payments are more like $950 P & I (principal and interest) payment. Adding taxes and insurance maybe another $150-$200 a month.

If you have a steady job and excellent credit, you can get a townhome or condo for less. I just sold a 1 bed condo near Hampden & Tamarac for $62,500 - payments (PITIH) with HOA less than $745.

Was that condo a 15 year mortgage?

[2bindenver]

yes p & i payment $440, taxes and insurance (content insurance) and HOA fee of $225

[Z3N1TH 0N3]

Originally Posted by 2bindenver

yes p & i payment $440, taxes and insurance (content insurance) and HOA fee of $225

That's not too bad, and not really a bad area. I was thinking about apartments down in that area temporarily, as the job I took in August is in the DTC area.

The estimates I was coming up with for monthly payments were from an online mortgage calculator, so I'm not sure how accurate those can be.

[2bindenver]

Current rates are less than 4%. I bet that is where the hangup is.

We looked at 10 condo/townhomes in and around the SE Denver/DTC area before deciding on the "one." We were looking at under $75,000.

You could get a one bed for $35,000. They tend to go quickly if they are in a decent area and good condition.

[Willy702]

Incomes are NOT low in Denver compared to national averages which is why housing is relatively high for an area with lots of open land not too far out on the eastern fringes of town. Besides there are plenty of reasonably priced options in central locations. They may not top the charts in safety or aesthetics, but cities like Englewood, Arvada and SE Aurora have plenty of options most working couples can afford and each is fairly well located to work centers and leisure amenities without being dangerous to venture out in.

[davebarnes]

According to the "8th Annual Demographia International Housing Affordability Survey: 2012", Denver ranks 177/210 in terms of affordability in the USA. Higher numbers are less affordable.
http://www.demographia.com/dhi.pdf

You might also find this
www.demographia.com/dhi-hcalc- (broken link)usa.pdf to be useful.

[distinctivedman]

There is also a program that creates below market priced homes for buyers who make less than the area median income households. Search for Denver affordable housing program on google. These can often be found in some of the best neighborhoods in Denver, Like Stapleton, Lowry and Downtown.

[Count David]

I don't live far from Hampden/Tamarac, there is absolutely nothing wrong with this area.

Places that IMO are a good value (and meet what I would think would be the minimum general definition of "safety"):

the older parts of Arvada
Aurora 80013, 80014, 80015
old Englewood
much of Lakewood
Littleton/Denver 80123
Northglenn/Thornton 80233
the older parts of Westminster
Wheat Ridge

notice that pretty much nowhere in c/c of Denver is on this list: the only truly affordable parts are on the west side of town south of Colfax (Harvey Park South/Bear Valley can be good values), north and NE of downtown, Montbello/GVR, and the East Colfax neighborhood, none of which are considered all that "safe" for the most part.