Rents Soar and Condo Construction Stalls, creating “Housing Squeeze”
Colorado’s economy is dependent on a strong housing market that includes diverse and attainable options. Despite strong demand, communities across Colorado face a growing shortage of one of the most critical options—owner-occupied, multi-family housing. Condo and townhome construction has effectively ground to a halt due in part to concerns among builders about the growing number of lawsuits over construction issues.
Today, condos represent just 3.1 percent of new housing starts, compared to nearly 23 percent in 2007. Because of this, would-be first-time homebuyers have significantly fewer options and are increasingly being forced into the skyrocketing rental market. The lack of owner-occupied, multi-family options also leaves behind seniors who are looking to downsize from single-family homes.
Colorado Heading Into a “Housing Squeeze”
A recent Sunday Denver Post front-page article focused on the “Housing Squeeze” and raised concerns over how “rising costs could move from a personal crisis to an economic drag” for families—and the state’s economy. Another Post story noted that renters “need to make $35 per hour, or almost 4½ times Colorado’s minimum wage” to afford the median metro Denver rental rate.
Legislature Can No Longer Wait to Address this Problem
The General Assembly needs to enact bipartisan common-sense reforms that reduce the threat of
expensive, time-consuming litigation; increase the supply of attainable housing; and protect the rights of all homeowners in a community. The Homeownership Opportunity Alliance is working with the General Assembly to enact legislation that will:
- Create a quick resolution process that is fair to homeowners who need repairs while protecting the rights of all owners in a community;
- Allow construction of more diverse and affordable housing options, closer to downtown and work, so that young workers can own rather than rent and seniors can make housing choices;
- Encourage new developments near light rail and transit stations that provide easy access to commuting, shopping and urban-living options, and promote density and sustainable housing options that consumers want but cannot access currently; and
- Foster conditions that will encourage builders to construct more affordable housing and thereby provide increased home ownership opportunities.
It’s time to fix Colorado law with common-sense steps that open the door to attainable home ownership while protecting the legal rights of all homeowners in a community. For more information and to take action, please visit:
@Housing4CO
Homeownership Opportunity Alliance Coalition
- American Council of Engineering Companies of Colorado
- American Subcontractors Association
- Apartment Association of Metro Denver
- Associated Builders and Contractors
- Associated General Contractors
- Building Jobs 4 Colorado
- Colorado Association of Commerce & Industry
- Colorado Association of Home Builders
- CO Association of Mechanical & Plumbing Contractors
- CO Association of Plumbing-Heating-Cooling Contractors
- Colorado Association of REALTORS®
- Colorado BUILDS
- Colorado Business Roundtable
- Colorado Civil Justice League
- Colorado Competitive Council
- Colorado Concern
- Colorado Contractors Association
- Colorado Hotel & Lodging Association
- Denver Metro Chamber of Commerce
- Denver South Economic Development Partnership
- Douglas County Commissioners
- Downtown Denver Partnership
- Heating, Air-Conditioning, Refrigeration Professionals
- Hispanic Contractors of Colorado
- Hope Communities
- Housing Colorado
- Independent Electrical Contractors
- Metro Denver Economic Development Corp.
- Metro Mayors Caucus
- NAIOP Colorado
- National Electrical Contractors
- Sheet Metal & Air Conditioning Contractor
- Transit Alliance
Mayors
- Marc Williams, Arvada
- Steve Hogan, Aurora
- Sue Horn, Bennet
- Dick McLean, Brighton
- Rick Pilgrim, Bow Mar
- Randy Ahrens, Broomfield
- Jeffrey Huff, Castle Pines
- Cathy Noon, Centennial
- Doug Tisdale, Cherry Hills Village
- Gale Christy, Columbine Valley
- Sean Ford, Commerce City
- Michael Hancock, Denver
- Randy Penn, Englewood
- Tony Carey, Frederick
- Marjorie Sloan, Golden
- Ron Rakowsky, Greenwood Village
- Bob Murphy, Lakewood
- Phil Cernanec, Littleton
- Jim Gunning, Lone Tree
- Joe Gerlach, Nederland
- Joyce Thomas, Northglenn
- Mike Waid, Parker
- Dallas Hall, Sheridan
- Herb Atchison, Westminster
- Joyce Jay, Wheat Ridge
