New report: Millennials can’t afford Denver homes
Californians are fleeing their worse markets for “great” deals here and jacking up Denver home prices
Look around at the bike stores, pot shops and dog parks: Denver is millennial-Central.
But the Bloomberg Millennial Housing Index raises the question about where millennials are living given that most can’t afford to buy a house in the Queen City of the Plains.
The median home value in Denver is $311,525, according to the index. But the average millennial, 18 to 35 years old, is bringing in $39,492 a year – $2,620 short of the $42,112 salary needed to buy a home.
In fact, Denver is the 12th toughest city in the U.S. for a millennial to buy a house, according to the index. The No. 1 toughest market: San Jose, California. There a median home price of $924,825 starkly contrasts a relatively low median millennial earning of $53,215. The San Jose earnings-gap: $80,162.
Four other California cities – San Francisco, Los Angeles and San Diego and Sacramento – top the index. In all but Sacramento the median cost of a house is well over $500,000. In those cities, millennials are earning a median salary that’s between $36,084 and $80,162 less than they need to buy a home.
When Californians migrate to Colorado – after living in these hyper-expensive California cities – they think Denver’s market is a deal and jack up our ever-rising home prices, a phenomenon The Denver Post reported on as early as 2009.
If you’re in search of a more affordable city to be a millennial, you might consider Detroit, Buffalo, Pittsburgh, Cleveland or Indianapolis, where those in the age group earn a median income between $18,700 and $21,207 higher than they need to buy a house.
Check out this chart from Bloomberg Business outlining the 50 biggest cities in the United States and where they stand.
Photo credit: Larry Johnson, Creative Commons, Flickr.
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