Shift to rentals behind lack of new condos in Colorado, study argues
Tighter credit markets, stagnant incomes and lower marriage rates are favoring the construction of apartments over condos, according to an economic study released Tuesday by Build Our Homes Right.
If Colorado’s construction defects law is a factor in the condo slowdown, hard data isn’t readily available to prove the point, noted Boulder economist Pat Pacey, who conducted the study.
“Clearly, the increased down payment, origination fees, mortgage insurance premiums, reduced real earnings are all more significant financial deterrents to home ownership than any barrier from construction defect laws,” Pacey said.
Build Our Homes Right is a coalition of homeowners and attorneys defending the state’s construction defects law, which is expected to face its strongest challenge yet in the upcoming legislative session, which starts Wednesday.