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Larry Hotz, Kentwood Real Estate, Greenwood Village, Colorado

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You are here: Home / Home Loans / Millennials Home Ownership Still Delayed in Denver

Millennials Home Ownership Still Delayed in Denver

July 25, 2020 By Larry Hotz, Kentwood Real Estate Leave a Comment

New report from Porch.com shows millennial home ownership in Denver is still low.

Less than 40% of millennials in Denver neighborhoods own their own home. That surprises me. Because, Denver homes priced less than $500,000 have skyrocketed every month this year except for April.  That’s when our industry was locked-down from in-person showings.

So, our most affordable homes in Denver neighborhoods and the suburbs sell at a record pace while the number of those homes for sale declines nearly every month.

Millennials home ownership

Prices continue rise as do home sales in Denver neighborhoods priced below $500,000.

And, home prices are increasing even though the pandemic. The average price home selling under $500,000 January was just over a $364,000. Today it’s above 377,000. So prices are going up his homes sell at frantic paces.

Milllennials  Housing in Denver Neighborhoods

The most obvious possible cause is that millennial’s are finally starting to buy homes and condominiums that they been renting. Not true! All around the country millennials home ownership lag other demographics in home ownership. Denver’s low percentage is typical of the whole country.

Denver Mortgage Loans For Millennials

Of course, some markets with lower priced homes and more affordable homes do better. For example, 48% of millennials in Salt Lake City now own real estate. In addition, Denver’s median income for millennials aged 25-40 is only $47,300 per year. That will not even qualify a millennial for the average priced at $448,000 with a minimum down payment. Here, a millennial usually needs 20% or so down payment with a Denver mortage lender for that average priced home.

Of course, a Denver mortgage loan with a 3% down payment loan could purchase a lower priced home. But, most millennials also tend to want urban properties “in the heart of the action”. At least, there used to be action in the bars and restaurants downtown before Corona virus. Millennials tend to choose walk-able Denver neighborhoods downtown. That trend increased in the last few year. But, it is hardly “new”. For decades millennials have flocked to the city. In fact, I did before I married in the 1970’s. .

The study conducted by Porch.com contrasts the millennial home ownership rate nationally of 39.5% to the overall 64% rate for all ages. That national number is exactly the same for millenials.

Why Denver Millenials Avoid Home Ownership

We can speculate why millennials tend to delay home ownership. Most commonly, experts cite delay of marriage and family formation, student debt and their preference for expensive, urban living tops the reasons they tend to rent more than buy their housing. In Denver, we have noticed that millennials who do form family units tend to want to own homes. Some are even choosing less expensive suburban living. The same home in the suburbs usually cost less than half in the suburbs.

Of course, the suburbs usually are “cool” and trendy. But, they are more practical for many Denver home buyers.

 

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Filed Under: Home Loans Tagged With: Home Owners, millennials

About Larry Hotz, Kentwood Real Estate

Larry Hotz is the team coordinator at All Denver Real Estate. He is also an active real estate broker at The Kentwood Company in Greenwood Village, Colorado. He lives in the Heritage Hills neighborhood of Lone Tree, a Denver suburb. He is an active member of the Metro Denver Association of Realtors and Metrolist, the local MLS.

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Copyright 2000-2022 by Loren Hotz Owner of All Denver Real Estate. All Rights Reserved. Loren (Larry) is a Broker Associate of The Hotz Group at Kentwood Real Estate. Some articles on this real estate blog were written by Brokers employed by various brokerages including Kentwood Real Estate as identified. Market statistics for the City and Denver Suburbs were provided by the Denver MLS search company, ReColorado.