Sep 2, 2022 - News

Denver homebuyers are getting richer and driving up home prices

Data: Redfin analysis of HMDA data; Chart: Kavya Beheraj and Skye Witley/Axios

Denver homebuyers make more money than they did pre-pandemic.

  • Yes, but: It's still not enough to cover the rise in home prices over the last two years.

By the numbers: Denver posted the 36th-largest increase in homebuyer incomes in the nation between 2019 and 2021, according to a Redfin analysis of mortgage data in the country's largest metros.

  • The median homebuyer income in Denver was up 8% from 2019. But the median home price in the Mile High City grew by nearly a third during that time, Redfin reported. That's versus 29% nationally.

What's happening: Since the start of the COVID pandemic, Denver has become a magnet for white-collar workers β€” suddenly free to work from home β€” to relocate from pricey job centers, like California, and leverage their higher salaries to buy cheaper homes.

The big picture: All those remote workers made previously inexpensive areas across the country much less affordable, Axios Markets' Emily Peck reports.

  • In these "pandemic boomtowns," homebuyer incomes soared over the past two years β€” and home prices went up right along with them, per Redfin's analysis.

What's next: These bubbles aren't busting, per se, but they're slowing down as more costly mortgage rates, coupled with higher prices, crush demand.

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