With the unprecedented growth in the Denver metro area over the past couple years, it was only a matter of time before home prices in the Mile High City jumped over the $500,000 mark. According to
Denver The New Hot Spot For Millennials
According to the NAR, Denver is one of the top 10 best markets in the country for millennial homebuyers. To obtain the rankings, the association analyzed 100 metro areas that have a large millennial presence, solid local job market conditions and strong migration patterns of young adults moving to the area to determine the best purchase prospects for young buyers. Also considered were housing affordability and inventory availability.
The NAR said first-time homebuyers have been mostly absent from the housing market in the years following the recession, but some metro areas , like Denver, have the perfect formula for attracting homebuyers in the millennial generation.
Inadequate job prospects, student debt and flat wage growth, combined with tight credit conditions and low inventory, have limited the ability for millennials to buy homes in top cities such as New York and San Francisco. However, there are other metro areas millennials are moving – largely in the west and Midwest - where job growth is strong and homeownership is more attainable. These markets are well-positioned to soon experience a rise in first-time buyers as the economy improves.
According to the association's research, 15.7 percent of the Denver metro population in the years between 2010 and 2012 were millennials and the growth in private payroll jobs from May 2013 to May 2014 was 2.7 percent. This growth is a huge motivator for younger generations to consider calling Denver home.
Though employment in Denver is relatively strong, the housing inventory here isn’t. In fact, there was a 20 percent drop in inventory year-over-year in May, which is a very real problem for young homebuyers in Denver.
Still, as the real estate market keeps gaining momentum and new construction continues, for a variety of reasons, many experts agree Denver is fast becoming a go-to for the millennial crowd.
Ken Blevins, Chief Executive Officer of Metrowest Real Estate Services, is a veteran in mortgage and default servicing with more than 23 years of experience in collections, foreclosure/bankruptcy, los....
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