Colorado is tough market for first-time homebuyers

Margaret Jackson

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(Courtesy of Evolving Home)

By Margaret Jackson / NewsBreak Denver

It’s no secret that buying a house is out of reach for many Colorado residents, and a report from Evolving Home illustrates how dire the situation is.

Colorado ranks No. 44 on Evolving Home’s list of Best States for First-Time Homebuyers, and with four states and Washington, D.C., tying for No. 47, first-time buyers here appear to be priced out of the market.

As of Dec. 31, 2020, the average home price was $438,096 and prices have continued to climb. Saving for a 20% downpayment of $87,619 takes the average first-time homebuyer in Colorado about four years.

Homebuyers borrow an average of $350,477 and pay $270,212 in interest at 4.5% throughout a 30-year loan. That makes the total mortgage cost, including interest, $620,688, according to the report.

Not dead last

States ranking lower than Colorado are Washington, Idaho, Oregon, Utah, California and Hawaii.

For first-time homebuyers, the top five states are West Virginia, Oklahoma, Arkansas, Iowa, and Kansas.

First-time buyers who want to learn more about what it takes to own their own homes can attend the Denver Metro Association of Realtors’ free Housapalooza event from 10 a.m. to 2 p.m. April 23 at the Holiday Inn Denver East, 3333 Quebec St.

The day includes a keynote speaker, a panel of first-time buyers who have completed the home buying process, informational booths and a Q&A with real estate experts.

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I'm a Denver-based business writer with expertise in commercial and residential real estate as well as general business news.

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