Millennials struggle to become first time homebuyers in Colorado

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DENVER (KDVR) — There is new research out highlighting the struggle many millennials in Colorado are facing when it comes to becoming first-time home buyers.

The challenge is even greater for millennials in cities like Denver, where there are fewer homes available.

Last month, the inventory of available homes for sale was only 213. That’s down -70% from January, 2020.

According to the report from ApartmentList.com, 18% of millennials believe they will always rent, rather than buying a home.

That figure is up 12% from the year prior, according to ApartmentList.com.

“There are tons of millennials who are out there looking to buy,” said Kelly Moye, with the Colorado Realtors Association.

Moye said typically millennials have a more difficult time when it comes to locking in a solid down payment, compared to other age groups.

“It’s hard to save for a down payment when you’re trying to compete with multiple offers and you have a low down payment or you’re struggling to even get some money at all — it makes it really hard for them,” said Moye.

Right now, the average sales price for a single family home in Denver is hovering above $689,000, while the average sales for a condo in the Mile High City is roughly $500,000.

“If they’re [millennials] working, they’re working hard. But they also might be paying off student-debt and it’s hard to get into even a condo,” Moye said.

Among millennials who are currently renting, but have plans of buying eventually, ApartmentList.com found 63% of those surveyed do not have any dedicated down payment savings set aside.

In Denver, the average cost of a nice one bedroom apartment is roughly $1,400 a month.

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