Northern Colorado City Has Some of the Highest Down Payments in the Country

Here in Northern Colorado, many of us are well aware of the state of the housing market. As home prices are starting to rise with an end not in sight, it has become much harder for many to be able to afford to buy their own home.

A recent study by Realtor.com revealed the cities that have the largest and smallest down payments in the country. The study found that one of Northern Colorado’s own cities has some of the highest down payment prices in the country.

Fort Collins Has the Third Highest Average Down Payment Percentage in the U.S.

That’s right, Fort Collins is on the board for the worst down payments in the entire country. For some, this may come as a shock. However, for many potential homebuyers in Northern Colorado, this is hardly a surprise.

As the article on Realtor.com says, while Fort Collins originally emerged as a cheaper alternative to Denver's housing market, those days are starting to come to an end.

The average down payment percentage for Fort Collins’ is all the way up at 23.2%. Pair that percentage with the median home list price of $625,000, and that means that the median down payment for a home in Fort Collins is all the way up at $105,533.

How Does Fort Collins Stack Up Against the Rest of the Country?

While Fort Collins has a brutal average down payment percentage, there are still two on the list that are worse. The second worst in the country is North Port, Florida, with a 23.5% average down payment. However, with a median home list price of $525,000, the median down payment is lower at $81,853.

However, neither Fort Collins nor North Port compares to Santa Rosa, California, with the highest down payment in the country. The average down payment percentage is all the way up to 25% there, and with a median home price all the way up at $1,070,990, people can expect a median down payment of $147,550.

The place with the lowest down payment percentage in the country is Killeen, Texas, at 5.3%. With a median home list price of $325,000, that means the median down payment is just $2,182.

Why is Housing so Expensive in Fort Collins, Colorado?

Well, high costs of living have become quite the norm here in Colorado over the past decade. For many, the increase in home prices along with higher interest rates make buying a home a pipe dream rather than a feasible reality.

In 2018, the median sales price for houses in the entire state of Colorado was $390,000. By 2022, it had jumped all the way up to $570,000. This paired with an average 30-year fixed interest rate for mortgage loans being at 7.88% today has made buying even more difficult. In 2018, the peak interest rate that year for such a loan was at 4.98%.