Really Worried about rental costs and housing (Denver, Broomfield: middle-class, for sale)

[IslandDreamin]

So I live here in Denver already, I've been living here for about 2 years now. My rent has gone up about $350/month and my income has not been raised to meet up with the demand. Everywhere I look I see expensive apartments charging way too much for what they're worth. When I look for houses in my range, I can only find run down, tiny homes with no yard going for double that what they were sold only a few years ago.

I've been thinking about moving to somewhere cheaper, but I've moved around so much in my life it wears me out just thinking about moving again. I don't want to, but if this rental market doesn't chill out I'm going to have to. This is not an affordable place to live anymore. The only new apartments they're building are only affordable for the upper middle income people or those silly micro apartments which may work for some. There's not enough affordable housing for lower-middle income people. The little housing there is gets snatched up almost immediately, or is in a crime ridden area.

I just don't know what to do. Move yet again? I was really hoping to make a home here, to finally grow some roots. But if I'm going to get pushed out due to increasing housing costs, then maybe this isn't the place for me after all.

[davebarnes]

Look at housing costs in Singapore and you will feel better.

[Mach50]

It's a crazy market for sure. What about finding a roommate or moving to a cheaper burb?

[mic111]

Moving sounds like the way to go. Nothing you can do about the housing cost.

[SkyDog77]

I agree with you and think this is a big problem for the city.

[himain]

I agree. Do you have anyone you can room with?

[emm74]

I think it's not good that there are not many reasonably priced rentals but on the other hand, I can't blame landlords from taking advantage of market conditions and getting the most rent they can.

I mean, no one goes to their boss and says Gee, thanks for offering me $20 per hour, but really, I'd rather you just give me $15. We all want to get the most we can for our work or for things we sell, and of course pay the least we can when we are on the other side. And it's not easy to find the balance between the two.

[ALStafford]

Originally Posted by davebarnes

Look at housing costs in Singapore and you will feel better.

Dave, I get where you're coming from, but this is becoming a real concern in the Denver area. Rent costs are outstripping income very quickly, even for those with good, stable employment.

I have a good job; I work for the state of Colorado. My particular position is not something I could do in the private sector; the job doesn't exist there (it's a regulatory position). My annual pay increase is about 2-4%. That's all the state budget allows for. My rent increase last year was over 6%. Looking at the amount listed online for my exact unit right now is 12% higher than what I currently pay. There's no way I could pay for that kind of increase. And yes, I do live in a somewhat more expensive area, in Belmar. However, I also live in one of the older buildings in that area, not one of the newly built ones with more bells and whistles. I am a college-educated professional, with over 15 years experience in my field. I should be able to afford housing costs, even at a slightly higher end than a new college graduate. But I will be having to move when my lease is up, because I simply cannot afford rent.

I understand there's an apparent housing shortage, with all the people relocating to the area. However, the fact that all the apartments being built to offset this shortage are high-end luxury units, it's even more difficult for solidly middle-class families to afford housing. I have not seen a new rental housing project that has started in the past 2 years that are designed to be "affordable" housing rather than high end units. Everything being built in the Belmar area is likely going to be even more expensive than where I live. I work in Broomfield (my office moved from 6th and Kipling to there AFTER I moved to Belmar, yay commute!), everything being built there that I've seen is the same; high end places in "new urban" settings. If anyone knows of anything being done to create more housing for middle-class families, I'd be happy to hear about it.

I also understand that buying is less expensive than renting, and that on this board, people are often advised to buy. But with rent prices skyrocketing, renters are completely unable to save money for down payment on homes. That, compounded with the absolutely insane increase in the price of houses for sale, and the crazy sellers market that have people bidding well over asking prices, makes it nearly impossible for a renter to move into home ownership. And we have the same shortage problems that the rental market has; too many buyers, not enough units for sale. And again, I simply don't see anything being built for first-time owners, or middle class families. Every new housing development I drive by has big signs that say "New Homes (condos/townhouses), prices starting mid-$350's." If I wanted to come up with 10% down, we're talking roughly 45% of my annual current annual salary. It would take several years to be able to save that much, and with a greater percentage of my salary going to rent each year, it becomes, well, a hamster on a wheel that never gets anywhere. (because, remember, rent is going up 12% and income is only increasing 4% at the most!). I'd love to be able to buy a home, sure. But in this market, it's impossible.

People have said that legal weed is causing a homeless problem in the Denver metro area. I don't think so. Not nearly as much as the unsustainable increase in housing costs. If something doesn't stop these skyrocketing prices for both rents and buying homes, I'm going to end homeless myself. A college educated professional, with a good job and benefits. I should be able to afford housing costs, without roommates or a second job. But at this rate, I know it won't be long before that will have to be what I do. Either that, or join the ranks of folks that sleep in their cars.

[DenverBound41]

This article was in Bloomberg yesterday.

Where Are All the Middle-Class Rentals? - Bloomberg Business

Unfortunately much of what you discuss isn't solely a Denver problem and I don't think there is a proper answer at this point.

[MSydney]

I am in exactly the same situation. College educated, have a good job, but I have been priced out of the housing market basically anywhere west of I-25 (and many parts East) and the rent I am paying for my apartment is just ridiculous. And it is true that it leaves me very little to be able to save for a house, and the house prices will rise faster than I could save anyway. The situation here may change in the next few years but I don't want to be paying these prices in the meantime. I am realizing that my only option seems to be moving elsewhere if I want to get ahead.