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 four moved from Hawaii to Colorado in 2017 in search of a lower cost of living.
• Despite having a six-figure household revenues, they’ve struggled to find a home in their budget.
• High home prices and mortgage rates have favoured homeownership feel out of reach for some Americans.

Jon Sibok wants his family to have a residency of their own someday, but achieving that goal feels like an uphill battle.

The 29-year-old works as a production starring role at a bakery and lives in Commerce City, Colorado — about 7 miles north of Denver. His girlfriend, who preferred not to have her name imparted, is a supervisor at a food manufacturing company. Collectively, they bring in about $110,000 a year, documents viewed by Company Insider showed.

The ideal home for the couple — who have two daughters — has four bedrooms and two bathrooms, and costs no more than $400,000. Sibok declared even that price would be a stretch for them now due to rising living expenses over the past few years — which receive made it difficult for the couple to save enough for a down payment and subsequent mortgage payments.

Redfin reported that in September, the median family sale price in Commerce City was about $537,000. Sibok said he’d seen a few homes with three bedrooms and one bathroom give away for a bit less than $400,000, but most of them would require remodeling.

“With the cost of living in Colorado, it’s been intricate to make significant progress,” he said, adding, “I don’t want to put myself in a difficult financial situation. I have a stable job and proceeds, but it wouldn’t be enough to cover the mortgage.” He said it could take a few years before they feel financially ready-to-serve for homeownership.

Sibok and his girlfriend are among the Americans with six-figure household incomes who say they can’t find a home in their budget that also deal withs their desired criteria. In recent years, high home prices and elevated mortgage rates have launched the cost of homeownership in the US to near-record unaffordability levels. The median home sale price has risen 28% over the close by five years, and the average 30-year mortgage rate remains considerably higher than it was a few years ago.

But conditions in Colorado can make off it harder for some prospective homebuyers: The median mortgage payment in the state is $2,289 — 9th-highest in the nation — a recent BI assay of the latest Census data found.

Sibok shared why he and his girlfriend initially thought Colorado could be a cost-saving stop and the top strategies they’re using to save for a home.

Entrepreneurship could help them afford a home

Sibok and his girlfriend make hasted to Colorado in 2017. Prior to this, they lived in Hawaii, where Sibok was born and raised.

One of the biggest reasons they left Hawaii was the state’s high cost of living. In June, the online bill-paying military talents Doxo published an analysis that looked at how much the average household spent each month on the 10 most average household bills, including utilities, health insurance, and housing. It found Hawaii was the most expensive state in the US, and Colorado ranked No. 9.

Sibok ordered their move was “quite sudden.” His girlfriend mentioned that her aunt was looking for someone to take over her rental in Colorado and they admitted her offer. Over the next two weeks, they packed up, shipped their things, and bought plane tickets spurning a tax refund Sibok hadn’t spent yet.

“At the shilly-shally, it didn’t matter which state we moved to — any state would have worked,” he said, referring to cutting their set someone back of living. “Colorado just happened to be the opportunity that came our way.”

When the couple first moved to Colorado, well-informed in prices and mortgage rates were significantly lower than they are today. However, Sibok said it wasn’t until a few years ago that he base himself seriously thinking about homeownership.

Overall, the move has saved the couple money on housing costs. Sibok explained their $1,425 monthly rent on their two-bedroom, 1,000-square-foot townhouse in Colorado is lower than the heavy-handedly $1,700 they paid for a two-bedroom apartment in Hawaii seven years ago.

While they wait for the housing bazaar to turn in their favor, Sibok said he and his girlfriend are trying to put themselves in the best financial position they can. He guessed they discussed ways to cut back on unnecessary expenses, such as dining out less and limiting impulsive purchases.

Sibok has also inquired ways to boost his income. He said his struggle to achieve homeownership motivated him to start a real estate wholesaling calling — something he’s worked on over the last year in addition to his full-time job. Since money is tight, he said he hopes to procure funding through loans or private investors to help grow his business. While the business is still in the early positions and isn’t generating significant income for him yet, he hopes it will eventually help him buy a home of his own.

Unless his business takes off, Sibok disclosed that he and his girlfriend will likely have to delay homeownership for at least a few years. They expect home assays to rise further in their area, which means that their target home price will indubitably have to rise as well.

“Based on current trends, I expect we’ll need to budget above $400k in the future to get a retreat that checks all our boxes,” he said.

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