DENVER (KDVR) — Colorado’s young homebuyers have a secret weapon – older friends and family.
Home service Porch analyzed mortgage data gathered under the Home Mortgage Disclosure Act to determine how many home purchasers under 35 used a co-signer over 55. With both home prices and interest rates at historic highs, the study gives insight to how some young buyers can compete in the U.S. housing market.
Nationally, 0.915% of homebuyers under 35 used an older cosigner in 2020. In Colorado, 1.361% did.
This makes Colorado the state with the second-highest rate of young buyers with help from older friends or relatives. Only Hawaii has a higher rate, with 1.75%.
The other states with high rates are concentrated in areas with high housing prices such as the west and Northeast. New York ranks third, California fourth and Montana fifth.
Alabama, Wisconsin and North Dakota, in contrast, have the nation’s lowest rates of young buyers needing assistance from elders.
Young Colorado homebuyers with older cosigners put an average $60,000 down on their homes in 2020. In that year, those buyers were buying properties valued an average of $385,000.
Since then, housing prices have skyrocketed even higher. The median price for a Denver area single-family detached home is above $600,000, and the cost for a townhome or condo is around $430,000, according to the most recent market report from the Denver Metro Association of Realtors.