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Old 06-10-2016, 02:02 PM
 
Location: Texas
3,249 posts, read 1,615,791 times
Reputation: 2882

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I understand that there are alot of debt-free people in Colorado but it seems like Denverites love debt.

5 states with the highest average mortgage debt - Financial Fitness Story

Top 10 Cities With the Most Debt | Personal Finance | US News

I also saw some statistics on student loan debt amounts in Denver and it was very undebted on college loans also compared to many, many cities.

I also did some research on the per-capita government debt outstanding and Denver has a debt of $11,000 per resident compared to Las Vegas which has $1,000 debt per resident.

I couldn't find other numbers but RTD has taken on massive debt for their light-rail expansion which other then the A line seems not well utilized.

Denver Public Schools also plan on huge future bond issues because of the massive growth of the school district.

PERA is also has huge future debt.

http://coloradopensionproject.com/fi.../underfunding/

These statistics are from well-before this epic real estate boom that is similar to the gold rush of the 1800s.

Now, it just seems like a city in a very temporary economic boom that has had a massive surge in new people because of some magazine rankings and positive publicity.

I think Denver is turning into one of those cities where there is a massive influx of people in their 20s and 30s moving there living a celebrity lifestyle with a mountain twist funded mainly by cheap debt.

Colorado is not that wealthy of a state it is ranked 14th on per-capita income, far beneath the Northeastern powerhouse corridor and California. It has also lost ground compared to many state's during this recent economic boom.

Connecticut home sales prices eke out a gain in April - Hartford Courant

Interestingly, Connecticut with nearly 100 Fortune 500 companies in commuting distance has a median home price of $238,000 which is about the same as a tiny 500 square foot condo in Denver.

I personally think it is very interesting how this state and metropolitan area has basically turned into a nothing but the best, upscale mentality that would make people on the coasts blush.

All in all, it seems like Denver has the mentality that the temporary economic boom will never end so the residents and city are running up debt like mad to pay for it.

Last edited by lovecrowds; 06-10-2016 at 02:17 PM..
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Old 06-10-2016, 02:13 PM
SQL
 
Location: The State of Delusion - Colorado
1,337 posts, read 842,335 times
Reputation: 1492
It's become expensive to live here. The city is going through a rapid growth period. The law of supply & demand dictates that with high demand and low inventory, the equilibrium price is going to be high. As more units are built, housing prices should stabilize.

FWIW, my 1200 sq. ft., 2BR/2BA condo in East Denver (Dayton Triangle specifically) cost me $178,000 last August. Not really that close to $238,000.
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Old 06-10-2016, 02:32 PM
 
Location: Castle Rock, CO
196 posts, read 134,705 times
Reputation: 398
Not too surprised on the mortgage piece - if the mortgage itself is a higher $ amount, the debt to person ratio is higher... (which isn't a huge concern if salaries/ investments/ savings are also higher, although the article doesn't reference that).

On the other hand, the non-mortgage related debt numbers are pretty crazy. This, I don't think is specific to Denver though. Sad that people rack up so much debt.
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Old 06-10-2016, 03:06 PM
 
Location: Denver and Boston
1,701 posts, read 1,528,397 times
Reputation: 3464
A couple of click bait "studies" on the internet by Experian and "moneytips.com" with no published methodology or named author (probably some $14/hour intern), and you expect serious discussion?
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Old 06-10-2016, 03:30 PM
 
Location: The analog world
17,087 posts, read 9,802,637 times
Reputation: 22736
Quote:
Originally Posted by lovecrowds View Post
I think Denver is turning into one of those cities where there is a massive influx of people in their 20s and 30s moving there living a celebrity lifestyle with a mountain twist funded mainly by cheap debt.

Colorado is not that wealthy of a state it is ranked 14th on per-capita income, far beneath the Northeastern powerhouse corridor and California. It has also lost ground compared to many state's during this recent economic boom.

Connecticut home sales prices eke out a gain in April - Hartford Courant

Interestingly, Connecticut with nearly 100 Fortune 500 companies in commuting distance has a median home price of $238,000 which is about the same as a tiny 500 square foot condo in Denver.

I personally think it is very interesting how this state and metropolitan area has basically turned into a nothing but the best, upscale mentality that would make people on the coasts blush.

All in all, it seems like Denver has the mentality that the temporary economic boom will never end so the residents and city are running up debt like mad to pay for it.
Regarding the bolded, how about comparing state to state or city to city? It's misleading to compare the median house price for the entire state of Connecticut with the cost of a condominium in the city of Denver.

Regarding the italicized, I think you need to look outside of downtown. The entire metro area does not live in Cherry Creek. Lots of us are living less than ostentatiously in the suburbs.

Last edited by randomparent; 06-10-2016 at 03:42 PM..
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Old 06-10-2016, 03:35 PM
 
Location: Texas
3,249 posts, read 1,615,791 times
Reputation: 2882
Quote:
Originally Posted by SQL View Post
It's become expensive to live here. The city is going through a rapid growth period. The law of supply & demand dictates that with high demand and low inventory, the equilibrium price is going to be high. As more units are built, housing prices should stabilize.

FWIW, my 1200 sq. ft., 2BR/2BA condo in East Denver (Dayton Triangle specifically) cost me $178,000 last August. Not really that close to $238,000.
Looks like you did get a relative bargain by Denver standards.

The median price of a single-family detached house in Denver is $398,000

Metro Denver single-family home prices approach a median of $400,000

It looks like 1,400 square foot homes in NW Denver and Park Hill tend to be $375,000-$400,000.
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Old 06-10-2016, 03:55 PM
SQL
 
Location: The State of Delusion - Colorado
1,337 posts, read 842,335 times
Reputation: 1492
Quote:
Originally Posted by lovecrowds View Post
Looks like you did get a relative bargain by Denver standards.

The median price of a single-family detached house in Denver is $398,000

Metro Denver single-family home prices approach a median of $400,000

It looks like 1,400 square foot homes in NW Denver and Park Hill tend to be $375,000-$400,000.
Median means that half the housing inventory is below that price, too.
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Old 06-10-2016, 04:24 PM
 
Location: Midwest
4,628 posts, read 3,955,015 times
Reputation: 6618
Quote:
Originally Posted by lovecrowds View Post
I understand that there are alot of debt-free people in Colorado but it seems like Denverites love debt.

5 states with the highest average mortgage debt - Financial Fitness Story

Top 10 Cities With the Most Debt | Personal Finance | US News

I also saw some statistics on student loan debt amounts in Denver and it was very undebted on college loans also compared to many, many cities.

I also did some research on the per-capita government debt outstanding and Denver has a debt of $11,000 per resident compared to Las Vegas which has $1,000 debt per resident.

I couldn't find other numbers but RTD has taken on massive debt for their light-rail expansion which other then the A line seems not well utilized.

Denver Public Schools also plan on huge future bond issues because of the massive growth of the school district.

PERA is also has huge future debt.

Underfunding - Colorado Pension Project

These statistics are from well-before this epic real estate boom that is similar to the gold rush of the 1800s.

Now, it just seems like a city in a very temporary economic boom that has had a massive surge in new people because of some magazine rankings and positive publicity.

I think Denver is turning into one of those cities where there is a massive influx of people in their 20s and 30s moving there living a celebrity lifestyle with a mountain twist funded mainly by cheap debt.

Colorado is not that wealthy of a state it is ranked 14th on per-capita income, far beneath the Northeastern powerhouse corridor and California. It has also lost ground compared to many state's during this recent economic boom.

Connecticut home sales prices eke out a gain in April - Hartford Courant

Interestingly, Connecticut with nearly 100 Fortune 500 companies in commuting distance has a median home price of $238,000 which is about the same as a tiny 500 square foot condo in Denver.

I personally think it is very interesting how this state and metropolitan area has basically turned into a nothing but the best, upscale mentality that would make people on the coasts blush.

All in all, it seems like Denver has the mentality that the temporary economic boom will never end so the residents and city are running up debt like mad to pay for it.
What you haven't mentioned is underfunded pensions...I really hope the people of Colorado deal with that sooner rather than later.

https://ballotpedia.org/Public_pensions_in_Colorado
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Old 06-10-2016, 07:07 PM
 
370 posts, read 394,579 times
Reputation: 840
Mediocre incomes + hugely rising housing prices + influx of young newcomers bringing in high college and moving debts = high debt to income ratio. I'm not surprised.
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Old 06-10-2016, 07:17 PM
 
138 posts, read 127,790 times
Reputation: 215
Quote:
Originally Posted by Robert5 View Post
A couple of click bait "studies" on the internet by Experian and "moneytips.com" with no published methodology or named author (probably some $14/hour intern), and you expect serious discussion?
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