How is the Housing Affordability in Denver?
If you live in Colorado, you’re probably aware that the housing market has recovered from the recession of 2008 and then some. The average median cost of a home has passed $350,000. Further, the current market is have an adverse effect on renters. As of May 2017, Mayor Hancock launched a new strategy to tackle the Denver Housing Affordability problem.
What is the problem?
What is the root cause of the Denver Housing Affordability problem? One of the biggest contributing factors is low inventory. Denver is currently in historic lows for inventory. By the end of April, there were only 5,361 houses on the market. Contrastly, in 2013 in the same month, there were 6,945 on the market. Furthermore, for new builds, water supply and shortage of laborers is contributing to the delays. Water supply issues increase the cost of new builds. Whereas, shortage of laborers is causing delays.
What is the solution?
According to Mayor Hancock and Erik Soilvan, Executive Director of the Mayor’s Office of Housing and Opportunities for People Everywhere (HOPE). Their objective is not just to put a roof over everyone’s head, but to improve the overall quality of life. The strategy is threefold: to leverage resources and coordinate efforts in order to create jobs, improve health, which will lead to being able to afford a good home.
According to the Denver Housing Authority, a minimum of 20,000 affordable housing units is required in order to meet demands. In addition to solving the affordable housing issue, this strategy will working with the Mayor’s mobility efforts to improve public transportation.