Low affordability has Colorado housing markets skating on thin ice

Home affordability in Colorado’s largest metro counties, with the exception of Mesa County, has dropped to its lowest levels in nine years, according to an analysis from ATTOM Data Solutions.

“We are entering some thin ice for housing in markets like Colorado that have reached affordability ceilings,” said Daren Blomquist, a senior vice president with ATTOM, parent of RealtyTrac. Diminished affordability is coinciding with rapidly rising mortgage rates that are expected to put a home purchase out of reach next year for a larger number of buyers, especially first-timers. If affordability reflects the thickness of the ice, then rising interest rates are akin to warming temperatures and people in places such as the Front Range need to listen for the sounds of cracking ice, Blomquist warns.

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