An article published in the Denver Business Journal, talks about the unusual housing market in Denver, CO. Where it is generally advised that buying is better than renting, that may not be the case in Colorado. In a study, Denver, Dallas and Houston are the only three markets were renting is advised and that are of concern to potential crashes in the near future.
Learn more about the Denver housing market in the article below, or visit the Denver Business Journal.
Denver housing market 'worrisome' to real estate economists, who advocate renting here
Mar 10, 2017, 8:00am MST
Ben MillerContributing WriterHOME OF THE DAY
Denver is only one of three markets in the country where a recent real estate economy study say it's better to rent a home than to buy one.
Nationally, only Denver, Dallas and Houston are the only markets where a national index produced by Florida Atlantic University and Florida International University faculty indicate that it's better to rent than buy.
Denver is only one of three markets in the country where a recent real estate economy… more
MATTHEW STAVER | BLOOMBERG
Denver recorded a score on the university's Beracha, Hardin & Johnson Buy vs. Rent Index that was "worrisome in terms of local housing market conditions."
“The scores for Dallas, Denver and Houston have worried us for some time now. The last time we saw scores of this magnitude, housing market crashes soon followed," said one of the university's researchers, in a statement.
The index uses data from the S&P/Case-Shiller Home Price Index, and then adds additional rental, maintenance and alternative investment data streams, to determine if it's better to own a home or rent in a market.
In the latest S&P/Case-Shiller Home Price Index, Denver home prices showed big gains over the previous year, but added that "questions about whether this is a normal housing market or if prices could be heading for a fall are natural."
Ben Miller contributes to the Denver Business Journal and compiles the Morning Edition email newsletter. Contact him at email@example.com.
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