If the time to buy a home was when the cost of renting was skyrocketing, now would be the time.
According to Zillow, Denver renters are putting nearly 32 percent of their income toward rent, while homeowners put only 18.9 percent of their income toward a mortgage.
Denver is among the nation’s top cities as far as the lack of affordability in rental rates, with only 35 affordable units available for every 100 extremely low-income renter households, according to a National Low Income Housing Coalition (NLIHC) affordable housing map. In comparison, 57 affordable rental units are available for every 100 extremely low-income renter households nationwide.
That puts the gap between those renter households – 15,609 – and the number of affordable and available rental units – 3,277 – at 12,332 in Denver, the NLIHC reports.
Colorado is one of 13 states with less than the national level of rental homes affordable and available to extremely low-income people, according to the NLIHC. The other states are Arizona, California, Florida, Georgia, Illinois, Michigan, Nevada, Oregon, Texas, Utah, Washington and Wisconsin.
Extremely low income is defined as households with income no more than 30 percent of the area median income (AMI), and very low-income households are those earning between 30 percent and 50 percent of the AMI. Affordable rental units are those for which rent and utilities cost no more than 30 percent of a renter's income.
The NLIHC reports that about 45 percent of the units affordable to extremely low-income households are occupied by those earning more than 30 percent of the AMI.
Boulder has 21 available and affordable units for every 100 extremely low-income renter households, according to the NLIHC, while Larimer, Summit, Eagle and Pitkin counties have 19, Weld County 34 and Douglas County only 11.
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RE/MAX of Boulder