Fort Collins Real Estate Market – Can Be More Affordable Than Renting
The local resource in the state of Colorado for affordable housing education, information and advocacy, Housing Colorado, released a report describing the comparison of wages and rents for jurisdictions in Colorado. The report “calculates the amount of money a household must earn in order to afford a rental unit in a range of sizes at that area’s fair market rent (FMR), based on the generally accepted affordability standard of paying no more than 30% of income for housing costs.” Rents are rising making buying Fort Collins Real Estate more of an option for people today.
In Colorado, rents have risen 7% in the last year due primarily to low vacancy rates and increasing rental demand from the foreclosure crisis. The Fair Market Rent (FMR) for a two-bedroom apartment is $924. A household must earn $3,080 per month, or $36,957 per year to be able to afford a home in this price range. Based on the assumption of a 40-hour work week and 52 weeks per year, the Housing Wage to afford a home at FMR is $17.77. At this same rate you could buy a home in Fort Collins and pay less than the average rental would cost for the same sized house.
Rental amounts are surpassing affordability rates at an alarming pace in Colorado. With Colorado’s minimum hourly wage at $7.25, a renter would need to work 98 hours per week to be able to afford a two-bedroom apartment at FMR, or have two minimum wage earners working 40 hours per week. The average wage in Colorado is $13.46 per hour, still below the affordability level of $17.77. Again, renting is becoming out of reach for some whereas buying a home may be a better option for you.
In Northern Colorado specifically, the hourly wage needed to afford a two bedroom house is $16.33 in Fort Collins/Loveland and $13.71 in Greeley. However, the estimated mean renter hourly wage for 2011 in Fort Collins/Loveland is $9.94 and in Greeley, the mean is $9.84 – well below the income needed to meet the affordability standard. When looking at housing costs, the average two bedroom apartment will cost $849 in Larimer County and $713 in Weld County; and yet renter households in Larimer County can only afford $517 per month or $512 in Weld County.
It remains obvious that affordable housing and rental availability will continue to be an issue for Northern Colorado. Owners who have been unable to sell their homes in a tight Fort Collins Real Estate market are considering leasing their property, or offering a lease to purchase option for buyers in Fort Collins. If managed and negotiated with a knowledgeable real estate professional familiar with both property management and sales, a lease to purchase is a viable option. Multi-family property will also be in high demand in the upcoming years due to affordability. If you would like more information about the benefits of buying vs. renting please contact me.
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Fort Collins Realtor
My name is Allison Klein and I am a successful Fort Collins Realtor selling Fort Collins Real Estate. Search my website for Fort Collins MLS listings free. My goal is to make sure that you have the smoothest transaction possible and provide you with exemplary customer service! Let me know how I can fullfill your Fort Collins Real Estate needs. Give me a call today at 970.818.6668 or fill out my online contact form for more information.
Whether working with buyers or sellers, my energy, professional contacts and vast resources are available to make my clients’ property searches in Fort Collins Real Estate and sales go as smoothly as possible. As a REALTOR since 2003, I am an elite Broker Associate at ERA Herman Group Real Estate. My real estate expertise lies within Northern Colorado; and I am the inarguable market maker in Fort Collins Real Estate. Even if one is just starting to consider a move or relocating to Fort Collins area, please do not hesitate to contact me. I look forward to sharing why the Fort Collins area is continually rated one of the places to live in the nation.
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