Denver more expensive then much wealthier metropolitan areas (Colorado Springs, Monument: real estate market, 2014)

[lovecrowds]

I still can't get over the insane home prices in Denver. It is beyond belief what people are paying for homes in this real estate rush that rivals the gold rush in the 1800s

Just read that the median home price is Denver is 398,000. Based on research from the Census the 2010-2014 median household income is $64,000.

This means the median home is 6.2 times the median household income.

Salt Lake which is Metro area that in my opinion offers more amenities then Denver. World-renowned hospitals, better funded universities, much more rail transit and 30 minutes or less to multiple ski-resorts has a median home price of $261,000 with a $61,000 median household income which is 4.2 times the median household income.

Colorado Springs which is a half-hour from all the office parks in Northern Douglas County has a median home price of $239,000 and median household income of $57,000 propped up by pensions, wealthy retirees and the government which is 4.1 times the median household income.

Monument which is a hop, skip and jump from Metro Denver has housing prices per square foot that are 1/3 of the price of Denver.

Washington DC with a median household income of $92,000 has a median home price of $370,000 which is roughly 4 times the median household income.

Denver with it's May price tag of $398,000 exceeds the 1st quarter median home price of $378,000 for Boston and $356,000 for Fairfield County, CT which is driving distance to New York City.

In the Midwest which is very underrated on quality of life, there is metro areas like Toledo, Ohio with $100,000 median home prices and $44,000 median household income which means it would only take about 26 months of income for the average household to buy a house outright.

I also found another Midwestern city of Fond Du Lac, WI with a median household income of nearly $55,000 and a median home price of $111,000 which means just over 2 years of income will buy the median household a single-family property outright.

[Timmyy]

It is all because of pot. (tongue in cheek)

[guyatwork37]

It's all relative to where you are coming from. A lot of people moving to Denver are coming from considerably more expensive areas, so in relation, it's actually rather cheap. Also, people are willing to pay more for nice things. Denver is a nice place to live, while the places you listed in you comparison kind if suck compared to Denver (subjective opinion of course).

[downtownnola]

In my opinion, real estate in Denver has soared way above what is reasonable for the median income of the area. I don't believe the trend will last, but time will tell. Unfortunately, when the bubble (if we are indeed in one) pops, it will have a major negative effect on the area's economy as a whole. Back in the mid 2000s, metros like Phoenix and Las Vegas were booming while Denver stayed on relatively stable footing. This time around, I think it may be Denver's turn to suffer. If I were a potential buyer, I wouldn't touch Denver's current real estate market with a 10 foot pole.

[guyatwork37]

Originally Posted by downtownnola

In my opinion, real estate in Denver has soared way above what is reasonable for the median income of the area. I don't believe the trend will last, but time will tell. Unfortunately, when the bubble (if we are indeed in one) pops, it will have a major negative effect on the area's economy as a whole. Back in the mid 2000s, metros like Phoenix and Las Vegas were booming while Denver stayed on relatively stable footing. This time around, I think it may be Denver's turn to suffer. If I were a potential buyer, I wouldn't touch Denver's current real estate market with a 10 foot pole.

That last bit only applies if a potential buyer has the intention of selling in the short term. If the goal is to stay in a home for a long time, then blips in the near term are irrelevant.

[downtownnola]

Originally Posted by guyatwork37

That last bit only applies if a potential buyer has the intention of selling in the short term. If the goal is to stay in a home for a long time, then blips in the near term are irrelevant.

True! No disagreement there. If you plan on staying in for the long hall, you're golden.

What is concerning is the buyers who believe that they need to "jump into the market now, or be priced out forever." I can't wrap my head around how this market is in any way sustainable. I could be 100% wrong, but I just have a hunch.

[bluescreen73]

The biggest threat to the short-term health of Colorado's economy right now is Amendment 69. If that harebrained scheme passes I seriously believe the state's economy will tank. If it becomes law I'm outta here. Not gonna see my healthcare costs double or triple so I can subsidize the deadbeats who'll invariably move here looking for a handout.

[Dirty-Mill]

Many of the people moving here are taking high paying jobs in tech and make considerably more than $64,000 per year. With the housing inventory so low high prices are to be expected.

There is no housing bubble. A housing bubble occurs when supply and demand both increase. In Denver the housing supply has decreased and the price has increased over the past few years.

Now there is a tech bubble... when that bursts there will probably be some foreclosures in the Denver metro. When foreclosure rate starts going up builders stop building. Construction workers get laid off. More forecloses happen. The massive number of people that moved here in the past five years get home sick and leave. Retail suffers. More people get laid off. Eventually we end up in a mad max style economy.

[tcbelvis]

Originally Posted by bluescreen73

The biggest threat to the short-term health of Colorado's economy right now is Amendment 69. If that harebrained scheme passes I seriously believe the state's economy will tank. If it becomes law I'm outta here. Not gonna see my healthcare costs double or triple so I can subsidize the deadbeats who'll invariably move here looking for a handout.

Ha! I typed this earlier and deleted it as to not start an argument.

10% pay cut (or 100% pay cut as many will be fired).... who would vote for that? BUT they got enough signatures to get it on the ballot...so SCARY.

I would disagree with long term value as as discussed here. I found a $200k house I love but they want $450k...It will never be worth that even after a crash and recovery. Maybe $350k 20 years post recovery! The prices are stupid and I don't know how the appraisers are pulling it off.

I am thinking of voting yes on 69 just for selfish reasons...to crash the CO economy as I will fare somewhat ok even if it passes.

[alloo66]

I think Amendment 69 will be good for the citizens of CO. Healthcare for all. Great concept. We already pay too much for medical insurance.