In a bit of good news for area home buyers, the median home price in metro Denver remained unchanged in June, which may be a signal that the real estate market in the Mile High City is hitting its
New Home Builders Challenged To Keep Up With Demand In Denver
HBA CEO Jeff Whiton said that all together, Denver saw about a 30 percent increase in new home activity, and that includes the counties of Adams, Arapahoe, Boulder, Broomfield, Denver, Douglas, Elbert and Jefferson, as well as all of the communities in each county. Last year, builders didn’t have enough subdivisions with lots ready to build on to meet the demand.
With fewer resale homes on the market than a year ago, builders probably won’t be able to build new homes fast enough to fill the void, according to the HBA. However, they expect a similar percentage jump in activity in 2014 from 2013, as there was last year from 2012.
In addition to a shortage of lots, the home building industry is suffering from a shortage of workers, which experts agree that is a long-term problem. The industry is seeing a decline in skilled craftsmen and other professional tradespeople, who are imperative to successful construction.
Another long-term challenge builders will continue to face is the rising commodity prices such as lumber, drywall and concrete. There is upward pressure on all of the material used in building a house. However, builders increasingly are finding cost-effective ways to build more energy-efficient and sustainable houses, which will lower utility costs for consumers while being better for the environment.
Ray and Carla have been working as a team since 1995. Carla’s extensive knowledge of the Denver area real estate market not only includes over 35 years as a Real Estate Broker Associate but also in....