More first-time homebuyers in Denver have a dual-income household, family help or end up getting roommates, Guide Real Estate broker Andre Whitt says.

Why it matters: While lack of affordability has pushed many buyers to the sidelines, they can regain purchasing power with the right financial plan.

What they're saying: Wannabe buyers fall into two camps, Domain Chief Financial Planner Katy Song tells Axios. There are people who are over-prepared or people who think they can afford more than they realistically can, she says.

Here are her tactical tips for making sure you're ready to buy, and determining what you can really afford.

💳 Look at your credit. If you don't have credit or it's not in good shape, it's not time to buy, she says. Your credit score determines how willing lenders are to give you money.

• If you're starting from scratch, Song recommends getting a secured credit card. To start building your score, put a recurring payment like Netflix on the card, and automatically pay it off every month. Never carry a balance, she says.
• There's no shame if you're in credit card debt —get aggressive and tackle it.
• You don't need to pay off your student loan debt or even car loans before applying for a mortgage.

💸 Calculate your maximum monthly payment. Generally, 28% to 32% of your net monthly cash flow is safe.

• Reality check: Your lender will likely approve you for a higher mortgage than what you could comfortably afford, Song says. They're not factoring in recurring expenses like therapy, gym memberships or that oh-so-necessary pet subscription box.
• Make that monthly payment calculation based on today's mortgage rate. "If the rate drops enough for you to refinance into a lower rate in the future, fantastic! But don't count on it," Whitt says.

💪 Build your savings and downpayment. Put away at least three months of expenses for emergency savings.

• For a downpayment, Song recommends at least 10-20% to keep your monthly payment comfortable, and start building equity as quickly as possible.
• Plus, more money down could get you that extra bedroom, for instance, even if it means having to save for longer.

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Despite persistent affordability issues, people are holding on to homeownership as the American dream. But that dream might feel far from reality, depending upon where you live, finance writer Katie Gatti, of Money with Katie, tells Axios.

In Texas and the Midwest, where real estate is relatively affordable compared to incomes, people in their late 20s and early 30s are hunting for their first home. But for those in high-cost areas, like New York, Chicago and San Francisco, it's not even on their radar, Gatti says.

• For many people, the desire to own is emotional, whether it's the fear of having to move or wanting a permanent place to grow your family and build memories.

The other side: Buyers' remorse is real.

• Most regretful homeowners she hears from miss the cash cushion renting afforded them or are surprised by regular home maintenance costs.
• For most homeowners, the financial rewards come years after buying, when your income rises, rents outpace your monthly mortgage and equity starts to build, Gatti says.

Reality check: It's OK not to buy. "It's not a reflection of you or your competence or progress as a person or legitimacy as an adult," Gatti says.

Inventory remains tight for buyers shopping this spring.

What they're saying: "Smart and savvy sellers are taking advantage of the limited inventory in the market and moving forward with listing their homes," Jen Routon, President of the DMAR Board, says.

• Well-priced homes for today's market — not two years ago — are moving quickly, and in some cases receive multiple, over-list price offers, she says.

The big picture: America's housing shortage and high mortgage rates are a big focus of President Biden's as he makes his pitch for a second term, Axios' Emily Peck reports.

• Biden wants to give U.S. homeowners a $10,000 tax credit to sell their starter home.
• His plan also includes a tax credit for first-time buyers that amounts to $5,000 a year for two years.

Co-buying is one way people are combating high housing costs. Have you ever purchased a home with a friend or family member?

• Would you ever buy a house with a non-romantic partner?
• Have you considered other less conventional ways to make buying a house more affordable?

Email [email protected] with your name and neighborhood. We might feature your insights in an upcoming newsletter.