Colorado Ranks as One of the Worst States for First-Time Homebuyers
Buying your first home is exciting, but it can also be stressful — especially in Colorado.
Why? It all comes down to the money.
Last year, research revealed that Colorado is the No. 2 state where homebuyers need co-signers to purchase a home. In March, Zillow data showed that housing prices in the Centennial State have increased by 50% in the last half-decade.
Unfortunately, the real estate market isn't looking up. A new report from Moneywise recently revealed the best and worst places for first-time homebuyers in the U.S. — and Colorado is the fourth worst.
The website determined this by looking at each state's median home prices on Zillow and the average down payment percentage of 13% from the National Association of Realtors.
According to Moneywise, the median home price in Colorado is a hefty $559,838, and the average down payment percentage of 13% is $72,778.94.
So, how does this compare to other states?
Homebuying in Colorado is cheaper than in Washington, California, or Hawaii — the latter of which has a median home price of $848,926 and an average down payment of $110,360.38.
However, the data for the Centennial State is dismal when looking at the best state for homebuyers: West Virginia. It has a median home price of $129,103 and an average down payment of $16,783.39.
Moneywise's advice for first-time homebuyers? You might want to look outside of Colorado.
"Armed with the knowledge of these findings, first-time homebuyers can make informed decisions when it comes to choosing a state to buy their first home and work their way towards a brighter financial future," said a spokesperson for the website.
Thankfully, not all of Colorado is expensive. Check out the most affordable places to live in the Centennial State in the gallery below.