In a new report by OJO Labs, Denver ranked fifth in the list of least affordable US cities in which to live, beaten out only by San Francisco, San Diego, Los Angeles and Miami.
Denver has not ranked in the top five in unaffordability until this year. The report uses a ratio of home sale price to median household income to determine an affordability score for each city.
Denver is not the only Colorado city to make the top ten with its score of 6.6, however. Pueblo and Colorado Springs were also on the list tied for 9th place with a score of 6 each.
Inflation seems to be a driving factor in Denver’s rise to the top five. According to the report, Denver’s average home sale price was $564,990, a 22.3 percent increase from the same time last year. In Pueblo and Colorado Springs, home sale prices averaged $435,000.
“Nationally, the median annual home price climbed from last month to $374,647 in March,” said the report. “Home prices rose 16.2% year over year in March to bring the national unaffordability score to 4.7, up from 4.4 last month.”
Other major cities making the list of most unaffordable cities include Sacramento (CA), Pensacola (FL), and Las Vegas (NV).
The top five most affordable cities, on the other hand, include Hartford/New Haven (CT), Detroit (MI), Cleveland/Akron (OH), Buffalo (NY), and the most affordable city, Green Bay (WI). The average home sale price in Green Bay at the time of the report was $150,000.
The city that moved the most on the list was Seattle, which climbed six spots to number 10 on the list, after a sharp 19 percent rise in home sale prices over the past year. “The unaffordability score for Seattle reached 6 in March, the highest number OJO Labs has recorded since January 2019,” reads the report.
ARTICLE: LAURA SPIVAK
MANAGING EDITOR: CARSON CHOATE
PHOTO CREDITS: AGODA.COM