Please ensure Javascript is enabled for purposes of website accessibility

CSI delves into Colorado’s Housing Market Disparity

Median home values have risen at twice the rate of household income since 2010

ColoradoBiz Staff //July 9, 2024//

Photo courtesy of Adobestock

Photo courtesy of Adobestock

CSI delves into Colorado’s Housing Market Disparity

Median home values have risen at twice the rate of household income since 2010

ColoradoBiz Staff //July 9, 2024//

The Common Sense Institute put some numbers and perspective to Colorado’s vexing challenge of housing affordability. Among the findings by the Greenwood Village-based nonpartisan think tank:

Since 2010, Colorado’s median home values have surged by 132.4%, while median household income has only risen by 65.2%. This growing disparity has widened the affordability gap for many residents. In 2022, the mortgage capacity for the median household was $344,468, while the median home value was $549,900. For the average household, the gap was even larger, with a mortgage capacity of $459,679 against an average home price of $712,426.

This mismatch means more Coloradans are struggling to afford homes, with the affordability gap growing from 46.8% in 2010 to 60.2% in 2022.

Despite more households being able to afford higher-priced homes, the market is oversupplying these expensive properties, making it harder for lower-income households to find affordable housing.

Addressing this issue requires building more homes and implementing state and local policy reforms, such as zoning changes and reducing the risks associated with condominium development. These measures are essential to close the gap between what households can afford and the current housing prices in Colorado.

Read the full report here.

p