
Is Denver housing market failing? Borrowers need $90K in salary for typical home - kimsk112
https://www.denverpost.com/2018/02/27/metro-denver-housing-market-failing/
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Rewqtr133
Is there something I'm missing?

"To qualify for a 30-year mortgage on a home at metro Denver’s median price,
assuming a 20 percent down payment and an interest rate of 4.04 percent, a
borrower needed income of $79,181, HSH.com calculates."

"The most recent U.S. Census Bureau estimate the median family income in metro
Denver is running just above $80,000, said Keith Gumbinger, a vice president
with HSH.com."

Someone making median income can afford a median home? That sounds pretty
reasonable to me...

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cafard
Back when I had close family in Denver, the market seemed to be subject to a
lot of booms and busts. A lot of that was from the energy-dependent economy.
Is there a reason to expect the upward pressure to continue?

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TheOtherHobbes
That depends on international investors.

A lot of high end London property is empty, bought by foreign investors who
are more interested in bubble income than a place to live.

It's a similar story in other cities around the world - including obscure
places you might not expect to have a property bubble. As soon as there's a
hint of upward price pressure, investors pile in and the bubble begins.

London's high end bubble has popped now, and there are literally thousands of
>£1m apartments lying empty, slowly dropping in price until they become
affordable or - more often - the company that owns and/or built them goes
bankrupt.

[https://www.theguardian.com/business/2018/jan/26/ghost-
tower...](https://www.theguardian.com/business/2018/jan/26/ghost-towers-half-
of-new-build-luxury-london-flats-fail-to-sell)

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user5994461
£1m is a few bedrooms flat, less than one hour from the center. I wouldn't
call that a luxury apartment but it's certainly beyond what the median will
afford in their lifetime.

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exolymph
I mean, if "expensive" equates to "failing," then sure.

