A study from Forbes suggests that Denver may be one of the most attractive places for consumers to go to when buying a home, but another study suggests that Denver is also the most expensive place to buy one, if one were only to count inland cities in the U.S.
The Forbes report showed Denver as the seventh best city for home buying consumers to trek to, due to its being “safe” in terms of home price gyrations – this is important, as fickle home price trends and, for some parts of 2014, double digit price appreciations, had forced many a home buyer to sit things out for the meantime. Denver, on the other hand, was shown as having a very stable market in terms of pricing.
The study culled its numbers from an unnamed local market monitor that gauges economic variables in over 300 metropolitan markets, and while most statistics point to home price increases decelerating as of recent months, Forbes’ data showed home prices still appreciating by 10 percent.
Separate from Forbes, HSH.com ran its own study that revealed that Denver is the most expensive city for consumers to buy a home, at least among those that are not situated on a coast. Home prices, as per HSH’s data, can range from about $278,000 to $337,000 depending on the area; if a consumer were to buy a home valued at the median value of $315,000, they would need to earn $63,000 annually in order to afford a mortgage payment worth $1,470 on a 4.28 percent interest rate.
Conversely, Pittsburgh was listed as the most affordable city for consumers to go to, among the 25 metros covered by the HSH study; in Pittsburgh, consumers need only earn $32,000 per year to afford a home at the median price of $137,000.
Still, Denver ranked eighth overall when talking about overall salary requirements, as far as the broader U.S. market goes. The most expensive city, by far, was San Francisco, which requires buyers to earn $145,361.06 annually to afford a median home, which is priced in the city at a whopping $600,000. Salary requirements in San Diego are $101,682.60, and are close to the six-digit mark in Los Angeles ($96,513.65) and New York ($92,271.49).
In Washington D.C., the average salary requirement was $81,757, while the requirement in Boston was $84,475. Seattle was yet another expensive city, with median home pricing at $359,000 and the salary required to buy such a home a rather pricey $75,098 per year; all these cities mentioned ranked above Denver in HSH’s report.
Other bargain markets included Cleveland (median home price $129,000, required salary $33,909.27), Tampa (median price $145,000, salary $35,731.95), Cincinnati (median price $149,000, salary $35,765.03), and St. Louis (median price $150,000, salary $35,799.96), rounding out the bottom five cities on the HSH survey, together with Pittsburgh.
HSH.com used several variables in its study, including average mortgage rates and home prices in 25 metro areas, and also took into account a mortgage’s principal, interest payments, insurance payments, and property taxes.