Denver’s housing market has been rapidly increasing in cost – in fact the average home prices in metro Denver have increased by 10 percent from a year ago to $439,161. With home prices on the rise, the availability of affordable housing options has decreased in the metro Denver area.
Chamber member Halcyon House Apartments and its parent company GHC Housing Partners, is leading the nation in creating affordable housing with more than 20,000 affordable housing units in 27 states. We sat down with GHC Housing Partners Managing Director, R.J. Miller to dive deeper into the need for affordable housing in today’s market.
Taking Care of Business: Tell me about Halcyon House Apartments and GHC Housing Partners and how the company got started?
R.J. Miller: Halcyon House Apartments is one of the few senior Section 8 subsidized affordable properties left in downtown. The project was originally built in 1982 and was in dire need of rehabilitation when GHC Housing Partners (GHC) purchased the property. Halcyon House’s residents are some of the most at-risk in Denver’s population and without these homes, they have very few housing alternatives. GHC, in partnership with the Denver Office of Housing and Urban Development and Energy Outreach Colorado, set out to preserve and renovate the building as a flagship example of what a Section 8 property can become.
TCB: Halcyon House Apartments is one of Denver’s premier Affordable Housing Communities. Why is it so crucial to create affordable housing communities not only in Denver, but across Colorado?
RM: Affordable housing is crucial as wealth disparity in our communities expands and programs continue to dwindle. As affordability has become a greater concern for local leaders and residents, a renewed concentration has been placed on meeting increased demand with new construction.
New construction is a key component of keeping housing costs in check, but maintaining the existing stock of housing at an affordable level is equally important. The cost of renovating an existing affordable housing community is a fraction of the cost and time it takes to build a new residential building. Considering the limited resources allocated toward affordable housing opportunities, housing stakeholders should consider placing increased focus on the benefits of revitalizing our existing housing stock to help meet the community’s needs.
TCB: Denver’s housing market has been rapidly growing over the past couple of years. Where do you see Denver’s housing and renting market in the next five years?
RM: Increases in Denver’s housing demand have significantly outpaced supply for years and the market is still far from equilibrium. Supply of new housing units has increased and will remain consistently high for the next five years; however, this is primarily targeting the high-end rental and sales markets and is still leaving the lower income and workforce housing demand largely under-served.
However the lack of middle and lower end housing will continue to drive rents higher and will push residents further out of the city in search of more options and affordability.
TCB: Why do you love doing business in Colorado?
RM: The state has found the right formula to attract businesses, residents and investors alike. There is a highly educated, diverse and growing population that has a vested interest in the state’s responsible development and has become a standout national example of a thriving place to live and work. The state’s growth creates a tangible and contagious energy. GHC sees Colorado as a state where innovation and “smart” growth is truly valued.
Laura James is the marketing and communications coordinator for the Denver Metro Chamber