Discover how the generational divide shapes Denver mortgage trends

Nearly of Denver homeowners carry a mortgage That s the second-highest rate in the country behind only Washington D C according to Realtor com research Nationally homeowners own nearly of U S homes outright marking the highest percentage ever recorded But Denver s mortgage-free rate rests at a mere far below the national average Several factors explain Denver s high mortgage rates Rising home values Home prices have surged making cash purchases challenging In-migration of buyers Multiple newcomers from pricier markets like California are relocating to Denver often outbidding residents and driving prices higher High competition Over the past minimal years demand for homes has exceeded supply driven by both new buyers and existing homeowners looking to move Although supply has increased this year prices remain high First-time buyers Denver has a key number of first-time homebuyers who typically enter the sphere with little equity and rely on mortgages to finance their purchases which contributes to high mortgage rates Since the trend towards mortgage independence has increased by while the percentage of financed homes has decreased by roughly In Denver just as across much of the country younger buyers are grappling with staggering home prices mounting trainee debt and elevated interest rates making entry into the housing realm increasingly daunting At the same time of older homeowners indicate they plan to age in place disrupting traditional homebuying and selling pathways reducing inventory and intensifying competition for first-time buyers Multiple older homeowners who leveraged ultra-low mortgage rates during the pandemic now feel little incentive to sell their properties fearing that moving to a new home would mean facing significantly higher borrowing costs Statistics from a latest Redfin survey underscores this trend revealing that only of older homeowners are considering a move to a region with just contemplating moving in with adult children or into assisted living The overwhelming majority plan to remain in their homes indefinitely leading to a growing generational divide in housing Looking ahead Eventually baby boomers homes will hit the arena And there may not be enough options to meet demand The senior housing sector suffered huge losses during the pandemic Demand nosedived due to high infection rates deaths and social-distancing restrictions imposed on residents and their families Labor shortages sent costs soaring Various projects defaulted on their mortgages after interest rates spiked Occupancy rates returned to prepandemic levels last year and rent advancement resumed Related ArticlesOctober Sponsored They got it right Downsizers tell how they timed their perfect senior move with aid from The Steller Group October Sponsored Colorado homes shrink Why a few buyers embrace smaller spaces October Sponsored Colorado homebuyers experience best sphere in years October Sponsored Denver area home buyers want houses not condos or townhomes October Sponsored Why Denver homeowners spend more on renovations than anyone else in America Senior housing occupancy rates in the United States rose by percentage points increasing from in the fourth quarter of to in the first quarter of according to information from NIC MAP Older adults are moving into senior housing at a rapid pace and that trend will continue given the wave of Baby Boomers and numerous more solo agers who don t have a caregiver to rely on as a safety net mentioned Lisa McCracken NIC s head of research and analytics The industry necessities to ramp up advancement for supply to catch up with demand but we don t foresee any meaningful movement here in given current sector conditions The news and editorial staffs of The Denver Post had no role in this post s preparation