Given the scarcity and prices of single-family detached homes, homebuyers are considering attached homes, such as townhomes, which are more economical to build and often come at a cheaper price.
That’s not necessarily the case in Denver. According to the Denver Post, only 28 percent of townhomes were priced below $400,000 during the last year, a price that’s barely affordable for someone who earns $94,000 a year with a 10 percent down payment and 4 percent mortgage rate. Denver has a median income of roughly $71,000.
The price range of the new construction isn’t matching up with what buyers can afford. According to John Covert, director of Metrostudy’s Colorado region, only 11 percent of all homes started in Denver are priced below $350,000.
Nearly three in 10 of the new homes hitting the market are attached, up from a low of 15.8 percent of the mix in 2012. Attached homes now hold the highest share of new-home activity since 2008.
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