If you want to buy a home, you may not be able to save the money for a down payment if you rent in the Denver area, according to the real estate website Zillow.com.
The latest report on rental rates released Thursday shows renters on average are putting 30 percent of their income into rent, up from 20 percent in the past, the site says.
According to the report, renters may have a tough time saving up for their down payment.
But Ron Throupe, a business professor at the University of Denver, says paying 30 percent of income isn’t high — it’s on track with where rents should be.
“We’re not stretched yet,” he said. “Actually we’re in a happy space where that percentage is in the low 30s, which is pretty common.”
Throupe says if renters want to buy a home and save for a down payment, they may want to consider keeping away from expensive luxurious units and try to save as much as possible.