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Westword reports that millennials (born between 1981 and 1996) could be waiting twenty years to save enough to afford a 20% downpayment on a home in Denver. Despite this news, Denver remains a popular location, with millennial house-hunters buying homes at an increasing rate — even if they have to pay more than previous generations. One reason is the new trend of older Americans "aging in place," resulting in fewer houses on the market, which drives up millennials' prices.
Changes in homeownership over generations
In Denver and across the US, home ownership is less prevalent for millennials than for their parents and grandparents. For example, 14% of Generation Xers who moved home in 2000 did so to buy their own homes, compared to 6% of millennials today. In 1981, 56% of baby boomers ages 25 to 35 lived in homes they were buying, compared to 37% of millennials today. And, if the homeownership rate for millennials were the same today as for previous generations aged 25-39, there'd be 3.4 million more homeowners.
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Denver: popular with millennials
The millennials buying homes consider Denver one of the top destinations — the city ranked sixth on the Meyers Millennial Desirability Index (behind Dallas, Houston, Austin, Phoenix, and Orlando). With a median home value of $427,300, Denver isn't the cheapest location, yet it has its perks. Denver offers high-paying employment opportunities (something millennials prioritize as they're sick of the hassle and expense of commuting). It's also famous for its activities and lower crime rates.
Denver seniors aging in place
Many older Denver residents intend to stay in their homes, keeping them off-limits to millennials. Aging in place is increasingly desired for the comfort and familiarity it offers. However, it can also be costly. Home improvements or in-home caretakers may be necessary, for example. Therefore, Numerous seniors are using reverse mortgages to borrow against their home equity tax-free to continue living in their homes comfortably through old age. This trend is mainly responsible for Colorado's fast-growing aging population — by 2030, the 65-and-older population will rise to 1.27 million, a 77% increase from 2015.
Alternatively, older residents may sell their homes, move in with family, downsize, or join assisted living communities. Their homes are then freed up for younger buyers. As millennials continue to reach peak home-buying age (25-45), we can expect the percentage of millennial Denver homeowners to only increase from here.
