This article says that the outlook for home builders is good in Denver. They ranked us #2 after Austin.
With prices being so I high, I definitely see where there is opportunity for starter communities as the article suggested... except it is really expensive to build in and around Denver right now, so would-be starter homes end up being more expensive than many people looking for starter homes would like.
@Bill S. , I would like to hear more of your thoughts on the article. What development projects are going on around the Denver area? The only one I have much familiarity with is Sterling Ranch.
Walker Hinshaw | [email protected]
@Walker Hinshaw I'm not in touch with the development community on a regular basis. What I do know about is smaller scale projects that would fall in the in-fill category. I also know that there is lots of room for more construction in Green Valley Ranch. Stapleton also has many lots that can be built on. From a building permit perspective all the action is in multifamily in terms of # of units. I don't think there will be many SFR constructed below the $300K price point. There are too many soft costs to make those economical. The cost of water taps, infrastructure (roads and drainage), development fees, land and such all create a baseline that is too high to turn a profit at the lower price points. If there are cheap units to be built they will be duplexes or townhouse style units. This is driven by builders insurance as we have discussed before.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!