Is It Really Worth It To Live In Denver On An Average Income?

In this video, we’ll explore whether or not it’s really worth it to live in Denver on an average income. And here’s your affordability calculator to see how much you can afford: https://www.reframingrealestate.com/affordability-calculator

Whether you’re a lifelong Denver resident or you’ve been thinking about moving to the city, this video is for you. We’ll take a look at the costs of living in Denver, and we’ll also discuss whether or not an average income in Denver is really enough to live on. After watching this video, you’ll have a better understanding of whether or not it’s worth it to live in Denver on an average income!

#denver #realestate

Helpful Tools:

✅✅ What is your Current Home Value: https://www.reframingrealestate.com/evaluation

✅✅ Rehab Calculator Free Download: https://bit.ly/3APvVMs

✅✅ Active Houses For Sale in Denver: https://www.reframingrealestate.com/listing

Alex Saldana on Social Media:

✅✅ Youtube: https://www.youtube.com/saldana0

✅✅ Facebook: https://www.facebook.com/alexsaldanadenver

✅✅ Instagram: https://www.instagram.com/alexsaldanadenver

✅✅ Tiktok: https://www.tiktok.com/@thealexsaldana

✅✅ Twitter: https://twitter.com/thealexsaldana

Transcript:

Can you actually buy a home in Colorado with the average income? It’s an interesting question it’s one that I get a lot there’s so many misconceptions out there so this is the show where I’m going to tell you that everything you know is wrong because you’ve been lied to your whole life from the mass meeting let’s be real Colorado is expensive but it is the best state in the country and I will fight anybody on this that says otherwise but what does it actually take to buy a home what are the average incomes look like and what does that truly buy you in the state of Colorado more specifically Denver which is gonna be on the most expensive side of Colorado you might be surprised let’s take a look what these numbers look like and what that’s actually going to get you the median household income in Colorado is 75 231 dollars a year now that’s a little bit different than the average household income in Colorado which is 100 933 per household now you might be saying to yourself oh my God these numbers seem just astronomical however in Colorado right now year 2022 the end of 2022 you can get a job most places for about 20 bucks an hour and how that looks is 20 bucks an hour times 40 hours a week 800 a week times 52 weeks a year is 41 600 there’s two earners in the household that’s 83 200 for a household with two earners in it so you can see how it might not be that far-fetched that our numbers are this high now something else that’s helping us out hugely in affordability so if you’re from the East Coast or the Midwest I’m from Chicago myself originally but I’ve been out here for 25 years now or so is that our property taxes are way way different than most other states especially out east so that’s going to help when it comes to the affordability is that more of your dollars go towards the house payment instead of property tax so let’s break down these two different income rages and what dollar amount you’re going to be able to search for with within the Denver area now being that Denver is going to be one of the more expensive areas if you’re living in Colorado Springs Fort Collins these numbers are going to be even better for you with the availability of what you can actually buy starting off with the median household income of 75 231 we can see in this affordability calculator which I’ll have the link in the description below that you can access is that if you’re earning seventy five thousand two hundred thirty one dollars and you’re putting down roughly five percent I had to kind of fudge with the numbers a little bit to get the calculator to work right on a 30-year loan which the average rates right now are at about 6.25 so what this is saying is you can afford a house up to 341 000 on the median household income now if we check out the average income being one hundred thousand nine hundred thirty three dollars with roughly a five percent down payment for a standard conventional loan 30-year fixed six point two five percent interest you can roughly afford a house at 463 000 as your top end of your limit now what do these prices actually buy you that’s the only important question so if you’re already making decent money maybe you just misunderstood you know how much you need to put down or what the affordability actually looks like but if you don’t own a home you definitely know what rental rates are in Denver and if you’re looking at a two bedroom anything under about 1800 bucks is a deal or not in a great part of town for a three bedroom you’re definitely in the mid 2000s a month for rent what does it actually get you so if you were able to afford 341 000 for a house let’s take a peek here so I’ve pulled up everything that’s active in the MLS 341 thousand dollars and less single family and condos that’s pulling up 289 results here if we go look at the map now I just pulled up in the 470 Loop we can see we got a big old cluster right near downtown we’ve got a handful Southwestern Denver more West like Englewood Centennial area and then a whole bunch Southeast Aurora and even kind of Central Denver here Glendale over by University Hills so there’s quite a few Pockets now what’s the breakdown between single families and condos because condos naturally are going to be cheaper let’s take a peek and if I just select single families

not a lot so sorry if I crushed your hopes and dreams if you’re making whatever 75 000 a year you probably aren’t going to get a single family home in Denver unless you’re willing to get a fixer-upper or live in a part of town that you really don’t want to live in so now if you’re looking on the upper end with the average income uh at 101 000 you’re going to be able to buy roughly up to 463 000 worth of house let’s see what those numbers shake down like and it looks like here you’ve got about 800 that you can pick from between single families and condos how many are single families you got 298 and if we look on the map here you can see once again next to being South Denver and Centennial not really much of an option but Southwest Denver North of Denver Westminster Broomfield uh Commerce City of course and then most of Aurora you are safe in the single family Zone and that’s going to get you three plus bedrooms two plus baths 2 000 square feet um you know a real a real home and if you want me to prove that let’s take a look let’s look at three plus bedrooms two plus baths you’ve still got 156 to choose from let’s say total square feet is over 1500 at 90 still on this map you know not so much in the southwestern part of Denver or Lakewood um but north of Denver Westminster Northglenn Thornton still wide open for you and then of course most of Aurora and if you’re looking at condos under this 463 thousand dollar price range you’re fairly wide open tons of stuff in downtown Denver uh if you like The Nightlife and maybe you’re younger and don’t care about parking um tons of stuff in Aurora Southwestern Denver pretty much all around you can pick and choose where you want to live so it is possible and maybe for less than you think I mean FHA Loans right now three and a half percent down uh is the norm conventional loans five percent down each have their own kind of quirks to the loan types but talking to a lender you know is going to be ultimately the the number one way to know what you can afford with your income and any debts that you might have I know on paper Colorado looks awfully expensive but once again going back to those property taxes for example if you made a hundred thousand dollars in Chicago Illinois you know you’re looking at Cook County their property taxes are over two percent so that same house we were just looking at for 463 000 you make a hundred grand a year you got five percent down in Chicago you’d have to be looking at a house for 390 000 or under to be at the same monthly payment so a lot more of your dollars here are just going towards the property which makes it really appealing for a lot of people you know we have one of the best lifestyle in the country no we don’t have the ocean but we have the mountains we have skiing we have so much going for a mountain biking climbing You Name It Outdoors wise we are one of the meccas of the world for outdoor activities and right now you know the Market’s in this weird rebalancing time and so we’re seeing a lot of sellers give concessions to buyers which are even helping towards loan closing costs doing two one rate buy Downs to get you in in a much more inexpensive rate to actually make your buying power that much more so as a buyer right now you’re actually getting more in control to get what you want to get you have a few minutes to actually decide on a property instead of you know two hours and 10 offers coming in you can actually have the weekend to think about things most properties are sitting on the market for 30 to 60 days right now so the Tide’s shifting a little bit getting a bit easier for buyers out there and I hope this helps you just a little bit and until the next time happy housing