How Much Home Can You Afford To Buy

Dated: 05/03/2017

Views: 337

Image title


Rental prices are consistently increasing all over the metro area, but if you’re currently paying rent in Colorado, can you really afford to take the leap into homeownership? The outlook may be better than you think.


According to a new study by Zillow, a Denver renter paying $2,000 a month in rent can afford to buy a $408,906 home in Denver. The good news is that's above the $377,500 median value of a Denver home, but the bad news is there are not a lot of offerings at the $408,000 level.


Zillow estimates that less than a third of homes for sale in Denver are priced less than $408,906. The company said it factored in "all monthly homeownership costs, such as property taxes, maintenance and insurance" and also figured a 20 percent down payment for the house, which is a major challenge for a lot of renters looking to buy a home.


In this market, in particular, buying versus renting is a financial trade-off – people are either saving more each month on a mortgage payment or spending more on rent. Many of the more affordable homes in Denver are older, smaller and in transitional neighborhoods. While renters may be paying a higher monthly premium, they also can take advantage of the amenities, larger space and desirable location that some apartment complexes offer.


So what’s the right move? Well, consider if you really want to be a homeowner. Then start with your finances – get pre-approved for a mortgage and you’ll know exactly how much home you can afford. If you decide you’re ready to take the plunge – or at least start looking around – contact Metrowest. We’d love to help you start the process!

Blog author image

Andy Potarf

Andy Potarf is a native of Denver and a graduate of Colorado State University. He works with first time homebuyers needing help getting prequalified all the way up to and including seasoned invest....

Latest Blog Posts

Best Neighborhoods For The Money In Denver

As Denver residents know all too well, the Mile High City is experiencing growth and expansion like we’ve never seen before. If you’re considering jumping into homeownership, according to

Read More

Denver Home Prices Set Record In 2017

According to the most recent data from the Denver Metro Association of Realtors (DMAR), home sales and prices in metro Denver once again hit record highs in 2017. We also broke records in terms of

Read More

Round Up Of Denvers Hottest Neighborhoods

With so much growth in the Mile High City and suburbs, just where is everyone moving to? According to “Hot Hoodz,” a recent report released by Boulder-based zavvie, a national HyperLocal and

Read More

November Sees Higher Home Prices Lower Inventory In Denver

It’s a bit of a double-edged sword in Denver for sellers. If you’re headed elsewhere, now is a great time to sell, but if you’re looking to relocate within the Denver metro area, depending on

Read More