Back when I had close family in Denver, the market seemed to be subject to a lot of booms and busts. A lot of that was from the energy-dependent economy. Is there a reason to expect the upward pressure to continue?
A lot of high end London property is empty, bought by foreign investors who are more interested in bubble income than a place to live.
It's a similar story in other cities around the world - including obscure places you might not expect to have a property bubble. As soon as there's a hint of upward price pressure, investors pile in and the bubble begins.
London's high end bubble has popped now, and there are literally thousands of >£1m apartments lying empty, slowly dropping in price until they become affordable or - more often - the company that owns and/or built them goes bankrupt.
Do you have any reason to think this is the case in Denver? Or are you just saying that it's happened in enough places that it seems reasonable to suppose that the same thing is happening here?
£1m is a few bedrooms flat, less than one hour from the center. I wouldn't call that a luxury apartment but it's certainly beyond what the median will afford in their lifetime.
Completely anecdotally, a lot of people are migrating to the Denver from the SFBay area. Denver (and the surrounding areas) has a very high quality of life, a burgeoning tech scene, good health care systems (a number of my doctor / nurse friends have recently moved there for positions), and a relatively low cost of living. It's a short, easy flight from anywhere on the West Coast and it's not too bad from the East Coast either.
Google, Slack, Strava, Gusto, VMWare, etc. etc. all either have offices or will shortly -- This boom seems much less energy-driven and more sustainable. Which sucks a little for my relatives who are public school teachers there and can no longer afford to live near the schools that they work at...
The Californians were moving there long ago, or at least the Coloradans thought they were. We now and then saw "Don't Californicate Colorado" bumper stickers in the 1970s.
"To qualify for a 30-year mortgage on a home at metro Denver’s median price, assuming a 20 percent down payment and an interest rate of 4.04 percent, a borrower needed income of $79,181, HSH.com calculates."
"The most recent U.S. Census Bureau estimate the median family income in metro Denver is running just above $80,000, said Keith Gumbinger, a vice president with HSH.com."
Someone making median income can afford a median home? That sounds pretty reasonable to me...
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[ 2.8 ms ] story [ 27.0 ms ] threadA lot of high end London property is empty, bought by foreign investors who are more interested in bubble income than a place to live.
It's a similar story in other cities around the world - including obscure places you might not expect to have a property bubble. As soon as there's a hint of upward price pressure, investors pile in and the bubble begins.
London's high end bubble has popped now, and there are literally thousands of >£1m apartments lying empty, slowly dropping in price until they become affordable or - more often - the company that owns and/or built them goes bankrupt.
https://www.theguardian.com/business/2018/jan/26/ghost-tower...
Indeed, Colorado is the 6th most popular place to move to from California according to that out-migration post the other day: http://lao.ca.gov/LAOEconTax/Article/Detail/265
Google, Slack, Strava, Gusto, VMWare, etc. etc. all either have offices or will shortly -- This boom seems much less energy-driven and more sustainable. Which sucks a little for my relatives who are public school teachers there and can no longer afford to live near the schools that they work at...
"To qualify for a 30-year mortgage on a home at metro Denver’s median price, assuming a 20 percent down payment and an interest rate of 4.04 percent, a borrower needed income of $79,181, HSH.com calculates."
"The most recent U.S. Census Bureau estimate the median family income in metro Denver is running just above $80,000, said Keith Gumbinger, a vice president with HSH.com."
Someone making median income can afford a median home? That sounds pretty reasonable to me...