DENVER (KDVR) — Potential homebuyers may have missed the boat on how much space they can expect in the Denver home market.
Buyers nationwide should be ready to give up lots of space expectations in 2022, according to an analysis of the housing market and income data from market analyst Point2Homes.
Inflated housing prices are clashing with record mortgage rates to wipe out much of the purchasing power for median-income homebuyers.
Buyers in several cities in Colorado, which has some of the nation’s highest real estate prices, can expect hundreds of square feet of less living space now than last year.
In Denver, the median income will buy a home with 489 square feet less living space than last year. This assumes a 20% down payment on a 30-year fixed-rate mortgage.
Other cities in the Denver metro lost even more space for the money. In Aurora, the median income gets 638 square feet less than last year, that’s roughly five bedrooms worth of living space.
Colorado Springs took an even harder hit for elbow room, with 774 square feet less living space for the price now than in 2021.
A median income in Denver won’t even buy an average-priced condo, according to the analysis.
Denver homebuyers have lost $137,073 in purchasing power from last year. Now, a median income buys a $350,000 home, which is less than the median metro price of a condo or townhome.