If you live in the Denver Metro Area, you know that the cost of housing has gone up significantly. The median home value has gone up 10.4% in the last year alone and is predicting to continue to rise. Because of this, Denver city leaders have started construction on a complex for the Downtown Area that is supposed to be more economical.
The Front Range as a whole is experiencing a boom in the economy, but this is making housing scarce and because of the demand, it’s quite expensive. This article gives a more in depth view of what the new housing facility will offer.
Construction starts on new affordable housing complex in Denver | FOX31 Denver
DENVER — City leaders broke ground on a new affordable housing complex on Thursday, but the project will do little to stop the sharp rise in rental prices across the city, especially downtown.
Developers have been working for years to keep pace with Denver’s population boom and increased demand for city living, but as new developments grow there still don’t seem to be many signs that prices are going to shrink.
A study by DenverInfill.com found that once current construction is complete, there will be nearly 13,752 new units within a 1.5 mile radius of downtown Denver since 2010.
But many of those new units are catering to a high-end clientele and those who can afford some pretty high prices for Denver.
Prices were checked on four recently completed rental complexes in neighborhoods surrounding downtown.
*Joule (Golden Triangle) Studio: 500 square feet starts at $1,600 One bed/one bath: 800 square feet starts at $2,200
*One City Block (North Capitol Hill) Studio: 500 square feet starts at $1,500 One bed/one bath: 700 square feet starts at $1,700
*The Douglas (Ballpark Neighborhood) Studio: 500 square feet starts at $1,400 One bed/one bath: 800 square feet starts at $1,900
*The Platform at Union Station (Lower Downtown) Studio: 500 square feet starts at $1,600 One bed/one bath: 800 square feet starts at $2,600
“I worry that we’re going to see concentrated poverty and areas of concentrated wealth, so that the segregation of the city just grows greater,” said John Hayden, who has worked to promote sustainable growth in the city for more than 20 years.
“In order for downtown to be a vibrant place to live, you need families and you need the elderly and you need students and those are groups of people who often can’t afford to pay $1,400 for a studio apartment.”
Hayden said he believes the rent prices will begin to level off as the more new projects are completed, and he said the continued urban development is a part of the solution, not the problem.
“If we just continue to sprawl out into the Plains, then we’re building a city that, ultimately, isn’t sustainable,” Hayden said.
Hayden said this is likely one of the busiest construction seasons in decades and there is some evidence to support that.
DenverInfill recently counted 23 tower cranes working on projects across the city, which is more than double the count in 2013.
Here’s a look at how those cranes and other planned projects will be transforming the Denver skyline.
Hayden said he’d like to see the city continue to add affordable housing all over the city, including downtown, and he hopes the cranes remain on the horizon for years to come.
“It really is those cranes and all the construction that will help bring those prices to a level that people can afford,” Hayden said. Construction starts on new affordable housing complex in Denver | FOX31 Denver
This tweet puts an exclamation point on the effort to attract people to Denver.
— Smart Growth America (@SmartGrowthUSA) July 1, 2016
In this report on Channel 7 News, a Zillow analyst feels that even though Denver is in the top 3 in the country as a seller’s market, the housing bubble is trending back to normal. Prices are still going up, but not as quickly as last year. In Denver, you can expect to pay around 20% of your income for a mortgage, whereas in San Francisco you pay up to 40%. Yikes!