Denver's Condo Supply Is Rising, But Not Meeting Demand

In 2017, Colorado lawmakers passed a construction-defects bill to reinvigorate Denver's condominium market. Thus far, there has been a 7.4 percent rise in under-construction condos, just 55 additional units, causing some to wonder if it will take a few years before supply starts to meet the area's strong demand.

John Covert, director of national research firm Metrostudy’s Colorado office, told The Denver Post that the defects ordinance has created a “relatively open legislative pathway,” but larger builders are not launching condo projects in Colorado, leaving the work to smaller, local companies and specialists. Covert added that the metro area may not see a sizable increase in production for years, citing the complexities of state and local regulations, and a tight labor market.

Affordability advocates aren’t sympathetic to the argument that construction costs are leading to condos that are not affordable for many would-be buyers. For them, familiar culprits are at work in the Denver housing market: profit margins and greed. “I would say that the condo projects that are under construction now are exacerbating the wealth gap and they are not providing an entry point for people who are lower to mid-level incomes,” said Tony Pigford, a board member with equality-advocacy group All In Denver.

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