To rent or to buy. For more young people, it's not really a choice anymore.
According to Zillow.com, in Denver, a 20 percent down payment means saving up more than $60,000for an average home in the metro area; the national average is $36,500. Zillow says the average Denver house price has gone up by more than 16 percent and now sits at $313,800.
“It's definitely hard because everything is so expensive now,” said Savana Beaty, 25.
Beaty has spent the past four years renting her apartment.
“All the money I make pretty much goes towards rent and that's about it,” she said.
According to the report, more than 34 percent of our monthly income is going to rent. That's compared to about 20 percent for a mortgage in the Denver metro area. The national average for that is 15 percent for a mortgage.
But with a down payment on an average house sitting at nearly $63,000 and rents on the rise, it's tougher than ever to save. Despite high numbers, owning could save money, but renters aren't able to break in because saving is so difficult with rents on the rise.
“You have a scenario where student loans are much higher, young people are starting out with more burden. We've seen in this economy as we came out of the major recession jobs prices didn't go up as much, the millennials didn't find full employment,” said University of Denver Associate Professor of Real Estate Ron Throupe.
If it makes you feel better, Denver, a 20 percent down payment in San Francisco and San Jose is more than $150,000. They're two of the priciest cities in the country. That's only $30,000 less than the median American home value.