Colorado Real Estate Journal - September 2, 2015
T here are two main reasons why millennials, first-time buyers and move-up families are being priced out of affordable homes. Land development costs are escalating for typical small and medium-size single-family lots in the suburbs at three to four homes per acre. Builders are sold 60- to 70-foot-wide lots at a range of between $70,000 and $100,000 each. Using the 4-1 ratio, a new home at these densities costs between $350,000 and $400,000. In my opinion, the state Legislature refuses to enact a fair and manageable construction defect law, meaning that builders do not want to build attached or condominium products due to the high probability of a lawsuit and the insurance costs. There simply is too much risk for developers and builders to take on these projects. Therefore, a major apartment boom is underway along the Front Range. Thousands of units are being built each year and many more are on the way. One solution to curb the apartment boom is to create higher-density, single-family detached developments, reducing costs to an affordable level for mainstream buyers. Our firm, along with Godden Sudik Architects, created architectural and land-planning layouts at densities ranging from four to 15 homes per acre – all detached properties. The layouts provide pocket parks and open space to create a less dense and more wide-open feel. Utilizing side-yard easements allows the homes to open up to private rear patios with usable outdoor space. There are over 140 million 50-year-old-plus empty nesters in the U.S., with 12,000 people joining the group every day. Many are looking for a single-family detached home with maintenance-free open floor plans and single-level living. The patio home layouts are in short supply along the Front Range. Empty-nest buyers are downsizing and desire convenient shopping, common amenities, open space and trails, without the outdoor maintenance responsibilities found in most developments. Our research indicates that buyers want something more than unaffordable, standard, car-dependent, suburban sprawl living. Many people actually prefer quaint neighborhoods with a European feel, especially if they are located in a sustainable, walkable community environment. We created a 21-point checklist for creating market-driven sustainable walkable communities that includes reusing storm-water, creating open spaces and xeriscaping. Higher-density solutions must be well designed, offer increased privacy and contain usable pocket parks, trails and open spaces. Plans also aim to reduce the impact of the automobile, although each home is set up with a two-car garage and there is visitor parking for guests. However, the more walkable a community is and the closer in proximity to retail and services it is, the less need there is for cars. I encourage everyone to think about new ideas and come up with solutions to solve the affordability issue. Builders, developers, planners, architects, and city and county officials should be interested in creating sustainable communities that will stand the test of time and provide value, preserve open space, and contain parks and trails. Remember, it’s not how dense you make it; it’s how you make it dense.