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Eliminate barriers to homeownership By Hunter Harrell
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he Southwest Colorado housing market is still hot. Regionally, the increased demand and low interest rates raised the median price of single-family homes here by 20.5% from $478,500 in 2020 to $576,750 this year. According to the Durango Area Association of Realtors reports, more people working remotely and relocating from larger cities continues to contribute to the thriving real estate market. For Four Corners renters, the lack of inventory and high demand means more barriers to entering homeownership – not to mention that rent
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Four Corners Real Estate Guide
costs in Colorado increased 9.5% year-over-year. Many renters typically spend more than 50% of their income on housing and utilities, though experts recommend spending no more than 30% of gross income on housing. According to a report published by the nonprofit organization National Low Income Housing Coalition, Colorado residents must work 72 hours at the minimum wage to afford (spending less than 30% of gross income) rent in a one-bedroom space. Those that want to limit work hours to 40 each week must earn at least $22.19 an hour
for a one-bedroom space or $27.50 to afford a twobedroom space. Of course, buying a home is a big step financially. With the rising cost of living, saving for a down payment and securing the appropriate financing can be the most difficult part as rent costs rise. Luckily, there are several steps every person can take to prevent themselves from being stuck in the renting rut.
Review finances Property is a huge expense, so it is often difficult to estimate what people can afford without diving into the dirty financial details.
