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VOLUME 41 • NUMBER 14 • MARCH 2, 2023
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Colorado is the 8th most expensive state for owning a home
BY FREDA MIKLIN GOVERNMENTAL REPORTER
As Governor Polis and the legislature grapple with how to solve the statewide housing shortage, which has been pegged at 127,000 housing units, industry experts are trying to figure out how to meet the state’s needs for its current and future population. A study by Up For Growth, a “national cross-sector member network committed to solving the housing shortage and affordability crisis through data-driven research and evidence-based policy,” found that our state’s housing
shortage was the seventh highest in the U.S. The Villager delved into national and statewide data developed by TodaysHomeowner. com (TH) to assess the affordability aspect of the equation. To better understand what it takes to buy and own a home in housing markets around the country, TH analyzed data they gathered from the U.S. Census Bureau, Zillow, and Freddie Mac. TH used the long-accepted industry standard that homeowners should spend no more than 30% of their pre-tax income on housing to determine affordability. Using median monthly pre-
tax household income and the cost of a 30-year fixed rate 6.15% mortgage, TH found that in 60% of the country, the cost of housing falls within the 30%-of-pretax-income limit, but in 40% of the states, including Colorado, it is more than 30%, and can go as high as 62%. The study found that the cost of housing relative to median income was lowest in the Midwest and highest in the West. Median home prices across the U.S. range from $144,985 in West Virginia to $903,318 in Hawaii, with Colorado coming in at number 43 out of 51 (in-
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cluding Washington, D.C.) at $575,373. Overall, homeowners in the Midwest spent an average of 22% of their pre-tax income on mortgage payments. That figure climbed to 25% in the South, 30% in the Northeast, and all the way to 41% in the West. The least expensive states in which to own a home, starting with the most economical, were West Virginia, Iowa, Kansas, Oklahoma, and Ohio. The most expensive states in which to own a home, starting with the priciest, were Hawaii, California, Washington, D.C., Mon-
tana, and Washington State. In Colorado, TH determined that the median home priced at $575,373 requires just under 41% of median monthly pre-tax income of $6,855 to pay the monthly mortgage payment of $2,804. For more information on the study’s findings, go to https:// todayshomeowner.com. fmiklin.villager@gmail.com
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