INSIDE
A
s many in Colorado’s real
estate community know,
construction defects and the
law that deals with them
has been a long, difficult
and contentious political issue. The
construction defects political see-
saw has rocked back and forth for
years in the General Assembly and,
right now, when it comes to condo
developments, our state’s construc-
tion defects law has created an
unfriendly environment for develop-
ers, builders, banks, insurers and,
most important, homebuyers.
By now you have heard and know
about the statistics.
Metro Denver is
the most expen-
sive major hous-
ing market in the
country that isn’t
located on one of
the two coasts.
Our median home
prices used to be
on a par with com-
parable economic
competitor mar-
kets, like Phoenix.
Today, at $315,000,
Denver’s median
home price is $115,000 higher than
the Phoenix market.
Part of Colorado’s rapidly rising
housing costs come from the lack
of for-sale, attainably priced condos.
Not long ago, 23 percent of Colora-
do’s new construction housing con-
sisted of affordable condominiums
and townhomes. Today, it stands at
4 percent, and only half of that is in
the affordable price range for mid-
dle-class Coloradans. At the same
time, metro Denver’s rental market
is skyrocketing, with national head-
lines noting an explosion in rental
rates that are rising faster than San
Francisco and New York City.
This is not just a Denver problem,
although Mayor Michael Hancock
has put it on the top of his list of
challenges facing the state’s largest
city. The lack of condos is spreading
across Colorado. Durango and Fort
Collins are struggling with a lack of
affordable housing and limited rent-
al options – and both have cited the
state’s construction defects law as
a significant impediment to condo
development in their communities.
The Homeownership Opportunity
July 2015
Dave Davia
Executive vice
president and
CEO, Colorado
Association
of Mechanical
and Plumbing
Contractors
