The High Cost of Housing and Inflation
Housing costs across Colorado’s Front Range climb higher and higher. According to a California Association of Realtors report, Colorado’s housing prices have risen 32.5% from 2019 through 2021. The median price for a home in Denver county is $622, 950. Colorado rents have also risen year-over-year. From 2020 to 2021, rent for a one-bedroom increased by 21.95%. In Denver, the average price of a one-bedroom is now over $2000.
As housing prices soar, so too has inflation. Inflation in the Denver metro area for the past 12 months has risen 7.9%. Nationally inflation hit a 39-year high of 7%. The Federal Reserve is poised to raise interest rates to combat inflation, but the rise in rates affects mortgage rates, which rose above 4%, a rate not seen since the pandemic started.
Karen Levine, Realtor with RE/MAX Alliance, and Lorne Levy, mortgage specialist with Polygon Financial Group, join Kim to discuss Colorado’s housing costs, the challenges of competing with investment companies for a small inventory of homes for sale, and more in segments three and four.