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DENVER – The Denver metro area is among the likes of the San Francisco Bay Area and Seattle when it comes to home price appreciation outpacing income growth, according to a new report from Nationwide insurance.
Nationwide’s “Health of Housing Markets” report looked at relative affordability – home prices in relation to income per capita – and found that among major metropolitan areas, Denver had the 5th steepest decline in affordability over the past year.
San Jose and San Francisco, California came in first and second, respectively, followed by Seattle and Oakland.
The median home price in metro Denver has risen by about 10 percent in the past year to $420,000 as of May. Rents also have been rising, with a one-bedroom apartment now renting for a median of $1,050.
It’s not just Denver and other Western cities seeing increases – Nationwide found that relative affordability has been on the decline in the majority of metro areas examined.
Here are 10 metro areas with the steepest declines in affordability, according to Nationwide:
1. San Jose, CA
2. San Francisco, CA
3. Seattle, WA
4. Oakland, CA
5. Denver, CO
6. Los Angeles, CA
7. San Diego, CA
8. Portland, OR
9. Nassau/Suffolk County, NY
10. Sacramento, CA
To read the full report, log on to inthenation.com/housing.