Buying a home in the Denver metro area can be pretty pricey for millennials according to Aldo Svaldi of the Denver Post. Even though mortgage rates and payments are still at the lower end , the average payment burden to buyers is 34.2% on a median home purchase price of $314,009. It is recommended to not spend more than 31% of your income on mortgage payments. However, incomes of millennials in the Denver metro area are projected to rise about 1% per year, which makes mortgage payments affordable within 33 months. At the end of the mortgage, payments will only be 13.6% of their income.
Unlike New York, Honolulu and San Francisco where mortgage payments are and will be unaffordable for most millennials in the long run and renting is the better option, Denver only stretches their income initially. In a recent study from Trulia it was even mentioned that most mortgage payments are actually affordable from the start in the Denver metro area.