The prices of renting and buying a home continue to climb quickly in Denver.
A new report from Zillow says home values in Denver were up 14.2 percent in April 2015 when compared to April of 2014.
The average rent in Denver is $1,868, an increase of 11.6 percent from a year ago, Zillow said.
“Is Denver at risk of becoming as expensive of a city as somewhere like New York and San Francisco? Well, we all hope not. I don’t think that will be the case,” University of Denver economist Mac Clouse told 7NEWS reporter Marc Stewart.
Clouse says home prices should eventually stabilize because there are still plenty of places to build new houses. He added that home prices are in many cases cheaper than 2007, before the economy slowed down.
Currently, the only cities seeing rent prices climb faster than Denver are San Jose and San Francisco.
While Denver’s average price of $1,868 is high, it’s still cheaper than several other major cities in the report including San Jose ($3,287), San Francisco ($3,162), New York ($2,372), San Diego ($2,330) Boston ($2,184) and Washington, D.C. ($2,107).
Seattle is just slightly behind Denver with an average rent of $1,858.
“Soaring rents outpaced home values in April for the first time in years, further deepening a ‘rental crisis’ and signaling that home values are growing at a more normal pace,” according to Zillow’s Real Estate Market Reports. “Home values have both risen and fallen over the past decade, but rents have been steadily rising. They are now higher than ever before.”
Zillow said the the average U.S. homebuyers can expect to spend about 15.3 percent of their income each month on a typical house payment. Renters can expect to spend about 30 percent on a monthly rent payment.
It’s not just housing prices that are soaring in Colorado.
Don’t expect any discounts on your grocery bill — food prices fluctuate no matter where you live.
But your utility bill may give you a break, since the temperature changes aren’t so extreme here.
Gas is usually cheap — because we’re close to refineries.
And when it comes to taxes, nothing here is too extreme.
“We’re still affordable in that sense,” said Clouse.