How Much Home Can You Afford To Buy

Dated: 05/03/2017

Views: 387

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

Denver Housing Market Sets Records In May

The housing market doesn’t show any signs of cooling in the Mile High City as, to the dismay of many buyers, we set two records last month: record-high home prices and record low average days on

Read More

How Long Does It Take To Close On A Denver Home

In the Mile High City, taking a home from listing to the closing table happens, on average, in as little as 41 days. According to Trulia, that’s one of the shortest turnaround times in the country

Read More

Denvers Hottest Neighborhoods

Denver’s real estate market isn’t showing any signs of slowing down as buyers quickly gobble up available properties nearly as soon as they’re listed. But what are the most popular

Read More

April Saw A Jump In Home Prices And Inventory

According to recent data from the Denver Metro Association of Realtors, the median price of residential properties – both detached single-family homes and condos – rose to $417,000 in April.

Read More