A couple who moved from Hawaii to Colorado for a lower cost of living are struggling to afford a home on a six-figure income

• A millennial mates moved from Hawaii to Colorado successful 2017 successful hunt of a little costs of living.
• Despite having a six-figure family income, they've struggled to find a location successful their budget.
• High location prices and owe rates person made homeownership consciousness retired of scope for immoderate Americans.

Jon Sibok wants his family to have a home of their ain someday, but achieving that goal feels for illustration an uphill battle.

The 29-year-old useful arsenic a accumulation lead astatine a bakery and lives successful Commerce City, Colorado — astir 7 miles northbound of Denver. His girlfriend, who preferred not to person her sanction disclosed, is simply a supervisor astatine a nutrient manufacturing company. Collectively, they bring successful astir $110,000 a year, documents viewed by Business Insider showed.

The perfect location for nan mates — who person 2 daughters — has 4 bedrooms and 2 bathrooms, and costs nary much than $400,000. Sibok said moreover that value would beryllium a agelong for them now owed to rising surviving expenses complete nan past fewer years — which person made it difficult for nan mates to prevention capable for a down costs and consequent owe payments.

Redfin reported that successful September, nan median location waste value successful Commerce City was about $537,000. Sibok said he'd seen a few homes pinch 3 bedrooms and 1 bathroom selling for a spot little than $400,000, but astir of them would require remodeling.

"With nan costs of surviving successful Colorado, it's been difficult to make important progress," he said, adding, "I don't want to put myself successful a difficult financial situation. I person a unchangeable occupation and income, but it wouldn't beryllium capable to screen nan mortgage." He said it could return a fewer years earlier they consciousness financially prepared for homeownership.

Sibok and his woman are among nan Americans pinch six-figure family incomes who opportunity they can't find a location successful their fund that besides meets their desired criteria. In caller years, precocious location prices and elevated owe rates person propelled nan costs of homeownership successful nan US to near-record unaffordability levels. The median location waste value has risen 28% complete nan past 5 years, and nan mean 30-year owe complaint remains considerably higher than it was a fewer years ago.

But conditions successful Colorado tin make it harder for immoderate prospective homebuyers: The median mortgage payment successful nan authorities is $2,289 — 9th-highest successful nan federation — a caller BI study of nan latest Census information found.

Sibok shared why he and his girlfriend initially thought Colorado could beryllium a cost-saving destination and nan apical strategies they're utilizing to prevention for a home.

Entrepreneurship could thief them spend a home

Sibok and his woman moved to Colorado successful 2017. Prior to this, they lived successful Hawaii, wherever Sibok was calved and raised.

One of nan biggest reasons they near Hawaii was nan state's precocious costs of living. In June, nan online bill-paying work Doxo published an analysis that looked astatine really overmuch nan mean family spent each period connected nan 10 most common family bills, including utilities, wellness insurance, and housing. It found Hawaii was nan astir costly authorities successful nan US, and Colorado classed No. 9.

Sibok said their move was "quite sudden." His woman mentioned that her aunt was looking for personification to return complete her rental successful Colorado and they accepted her offer. Over nan adjacent 2 weeks, they packed up, shipped their things, and bought level tickets utilizing a taxation refund Sibok hadn't spent yet.

"At nan time, it didn't matter which authorities we moved to — immoderate authorities would person worked," he said, referring to cutting their costs of living. "Colorado conscionable happened to beryllium nan opportunity that came our way."

When the mates first moved to Colorado, location prices and owe rates were importantly little than they are today. However, Sibok said it wasn't until a fewer years agone that he recovered himself earnestly reasoning astir homeownership.

Overall, nan move has saved nan mates money connected lodging costs. Sibok said their $1,425 monthly rent connected their two-bedroom, 1,000-square-foot townhouse successful Colorado is little than nan astir $1,700 they paid for a two-bedroom flat successful Hawaii 7 years ago.

While they hold for nan lodging marketplace to move successful their favor, Sibok said he and his woman are trying to put themselves successful nan champion financial position they can. He said they discussed ways to trim backmost connected unnecessary expenses, specified arsenic eating retired little and limiting impulsive purchases.

Sibok has besides explored ways to boost his income. He said his struggle to execute homeownership motivated him to commencement a existent property wholesaling business — thing he's worked connected complete nan past twelvemonth successful summation to his full-time job. Since money is tight, he said he hopes to unafraid backing done loans aliases backstage investors to thief turn his business. While nan business is still successful nan early stages and isn't generating important income for him yet, he hopes it will yet thief him bargain a location of his own.

Unless his business takes off, Sibok said that he and his woman will apt person to hold homeownership for astatine slightest a fewer years. They expect location prices to emergence further successful their area, which intends that their target location value will apt person to emergence arsenic well.

"Based connected existent trends, I expect we'll request to fund supra $400k successful nan early to get a location that checks each our boxes," he said.

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