I haven’t written about the housing market in Denver and all along the Front Range area for quite some time, so I thought it might be time to post an update on what the prospect of renting a home or apartment in the metro area might entail.
If you own real estate, the news is great, but for the average population in Denver as well as the whole state of Colorado, the outlook is bleak. In fact, when compared to all the states, Colorado is 12th on the list for the amount of income a person needs to make in order to pay their rent.
This report from Channel 7 News provides the details on what to expect with the cost of rent for a 2-bedroom apartment in Denver CO:
Report: Minimum wage workers have to work 95 hours a week to make rent in Colorado
With a statewide fair-market price of $1,143 per month for a 2-bedroom apartment, a person would need to make $21.97 per hour, working 40 hours each week, in order to avoid spending more than 30 percent of their income on rent, according to the report.
The 30-percent threshold is important because that’s the point at which the federal government considers someone to be “cost burdened,” meaning they will have difficulty paying for other important expenses like food, transportation and medical care.
The fair-market rent in the Denver area is significantly higher than the state, at more than $1,300. This means that a minimum wage worker in Denver would have to work 95 hours a week to pay their rent.
To work that many hours per week means that you have to work more than 18 hours a day in a 5-day week or more than 15 hours daily for 6 days a week. Let’s say you just decide you need to work every day, but even then you would still have to work more than 13 hours to make ends meet.
The next video points out how much the cost has increased from this time last year:
What is the reason for the excessive cost of rent in Denver CO? A big component is the booming economy, in part due to the legalization of marijuana. Then you take into consideration the 300 days of sunshine, the beautiful Rocky Mountains that outline the horizon, and the fact that it has been on the Forbes’ list as one of the best places for business and careers, and you can see the attraction.
Denver also supports a number of growing industries in technology and telecommunications, which is high on the list for millennials in the job market. An additional bonus is that you are only an hour away from some awesome snow skiing.
The following post provides some additional insight on the growing Denver economy:
It is the engine of a booming regional economy, with strong job and income growth in recent years. Plus, it’s home to the 2016 Super Bowl champions. Here are a few things to consider if you’re thinking about moving to Denver.
1. The Cost of Living Is Going Up
Among major U.S. cities, Denver’s cost of living is somewhere near the middle of the pack. It’s not nearly as expensive as Los Angeles or Boston (not to mention San Francisco or New York) but it isn’t as cheap as the big cities in Texas. That being said, housing costs have been rising rapidly in recent years, so this could be changing.
See the full post here: 19 Things You Need to Know About Moving to Denver | SmartAsset.com
Another obvious area of growth in Denver is the construction industry. Jobs in this area are plentiful as there is a lack of skilled laborers. Companies are hiring with no experience needed for anywhere from $12 to $45 per hour, but with the cost of renting or buying at an all-time high you better hope for the mid to upper end of that amount to avoid a long work week.