Condominium Construction Remains Slow Even 9 Months After the Passage of the Construction-Defect Bill
The passing of the construction-defect bill was a big win for Colorado and the housing market. A big win indeed, but challenges still remain. Some of these challenges include high insurance premiums from the previous years of lawsuits related with condominium builds.
These continued challenges have large builders still weary to begin projects in the state. This leaves small local builders to begin and continue projects. So, we can expect that the condominium starts will be a slow progression for the time being. However, we should not let this slow start deter from the fact the passing of the construction-defect bill did bring some new condominium construction. We saw a 7.4% increase in condos under construction for metro Denver in 2017 and 796 condos began construction or continued construction in 2017.
Beggars can’t be choosers. While the number of condominium construction starts are lower than we would prefer 9 months after the passage of the construction-defect bill; any construction is good construction. For 2017 condo prices increased 9.8% while the inventory for condos increased 3%. This increase in price could be the push large builders need to pique their interests for starting projects in the state. Kelly Moye a CAR spokesperson, told The Denver Post that the increase of price is due to the increase of demand. Build it and they will come.
To View the Full Story written by Joe Rubino Visit The Denver Post article HERE