First-time homebuyers do not need another report that tells them how difficult it is to get a foot in the door, but the Denver subway continues to rank as one of the least affordable housing markets off any of the coasts, according to a new study from NerdWallet.
If that wasn’t bad enough, there was a 32% drop in available lists between the third and fourth quarters biggest drop of any major subway. But buyers took a break from a 2% drop in the average list price, which fell from $ 536,378 in the third quarter to $ 524,387 in the fourth in the Denver subway.
The NerdWallet study looked at what multiple of the median household incomes a first-time buyer would need to spend to buy a home at the average listing price in the 50 largest U.S. cities during the fourth quarter.
“Value for money is really a buying tool to quickly determine if a home is a realistic goal. Looking at housing three times, your income has generally been considered a good place to start, but none of the 50 largest subways in our analysis made this cut, says Elizabeth Renter, a NerdWallet data analyst.
Nationally, the multiple goes 5.2 times the average household income for buyers in the age group 25-44 years, a power of attorney for the first time. In the Denver subway, the median income to average price list was 5.7 times, down from 5.9 times in the third quarter.
While not as bad as the 12 times households’ first buyers encounter in Los Angeles, it is the highest of any inner city after Salt Lake City, where the price rating was 6.1. Working for Denver’s advantage is a higher median household income of $ 91,209 for those between the ages of 25 and 44, compared to $ 86,332 in Salt Lake City.
Some major subways are still close to meeting the three times income rule, including St. Louis, Pittsburgh, Cleveland and Buffalo, NY. A matter of greater acceptance of remote work arrangements during the pandemic has increased is whether young adults who can not afford more expensive markets like Denver will be drawn to cheaper.
In Cleveland, the average house price remained below $ 200,000 to $ 198,835, less than half that of Denver. And for those who are willing to live in Buffalo and cheer on the bills, the average list price is a modest $ 210,552.