The Denver metro area is in the midst of a perfect storm that threatens our ability to retain one of the best workforces in the country. Demand for housing outweighs supply because of the influx of people, coupled with a shortage of new construction for entry-level, for-sale condominiums and houses. Adding to the challenge, we have one of nation’s highest housing market appreciation rates — up 11.4 percent from last year alone.
The resulting lack of affordable options, from rental properties to entry-level homes for sale, is making the metro area unaffordable for many of our workers.
And, we all know that our workforce (one of the most educated in the country) is our competitive advantage—it drives the success of our companies and makes us an attractive destination for relocating and expanding companies. It’s critical we find a way to increase the full spectrum of housing options for those workers. Frankly, our economic future depends on it.
The current market imbalance is pricing out both renters and potential homeowners, pushing them lower on the housing spectrum and putting more tension on affordable housing options. Many neighborhoods in the region that were once affordable for an average wage earner (the median household income for the Denver metro area is $66,870) are now out of reach with the median priced home just below $390,000. As bidding wars fuel rapid appreciation, more and more Coloradans are finding themselves priced out of communities. That reality is putting pressure across most of the housing spectrum, from those experiencing homelessness to those vying for the limited supply of entry-level, for-sale housing.
Many minds in our community are hard at work trying to impact this issue. And that’s a good thing, because the reality is the scope of this issue is too far-reaching to be addressed by a single sector of our community — it will take all three sectors (public, private and nonprofit) working together.
We’re all going to have to put a little more skin in the game to develop the right solutions that result in a vibrant, diverse community. What this full-scale approach looks like in the metro region remains to be seen, but partners are coming to the table and communities are starting to act.
One thing is certain — we will have to be a region that embraces a range and combination of solutions:
- Increasing investment from our business community in the form of purchasing tax-exempt bonds, partnering with developers on workforce housing or offering housing bonuses.
- Enhancing investment from the philanthropy community as they make program-related investments in developments.
- Reducing costs and burdens for developers, making it easier for those who are building affordable housing.
- Using additional funding sources like tax-increment financing.
- Offering priority consideration for the sale of land by cities, public utilities or school districts for affordable and workforce projects.
- Fixing our public policy to ensure it isn’t working against us by reforming our construction defects laws, an effort we’ve undertaken in recent years that has failed at the legislature.
The key is taking stakeholder feedback into consideration and inviting competing perspectives and interests to the same table to find the right, full array of solutions that will be needed. That’s how we do business in Colorado, and housing is no different. We look forward to working together to develop an all-of-the-above strategy that provides a full spectrum of housing options for the future of our workforce and our economy.
Kelly Brough is president and CEO of the Denver Metro Chamber of Commerce.
This post was originally published on The Colorado Statesman.