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As contentious Colorado housing laws take effect, some cities are playing nice — while others resist or sue

Sun, 06/29/2025 - 06:00

Lafayette’s mayor, JD Mangat, can’t afford a house in the city he leads.

On a salary as a middle school social studies teacher, home prices in the Boulder County city of 30,000 are out of reach for the 29-year-old Lafayette native.

“I live at home with my parents,” he said. “None of my friends growing up still live in Lafayette.”

Yet, when it comes to a cluster of housing bills lawmakers passed last year — all designed to abate the astronomical price of housing in Colorado — Mangat is firmly opposed.

“It would eliminate city standards and put in place state standards,” the mayor said. “This is going to have really detrimental impacts on Lafayette. This approach is insane.”

The laws, two of which go into effect on Monday, reached into matters that previously were local decisions. They removed home occupancy limits, will allow for accessory dwelling units on single-family lots, will limit parking requirements in transit corridors and prodded cities to increase housing density in those transit-rich areas. The laws largely apply only to Front Range cities.

Last month, Lafayette joined five other metro Denver cities in suing Gov. Jared Polis, who signed the measures into law a year ago. Two of the laws, the plaintiffs claim, unconstitutionally impinge on the authority of local governments to set their own land-use rules.

Just 13 miles up U.S. 287 from Old Town Lafayette, Longmont is taking a different approach.

While the city opposed the transit-oriented density bill as state government overreach, Longmont is fulfilling what the law requires without resistance. Just last week, the city submitted a preliminary report to the state on how it will comply with the law. It also outlined for state officials the rollout of its accessory dwelling unit policy, covering ADUs like backyard cottages and garage apartments.

And just weeks after Polis signed the parking bill last year, Longmont became the first Colorado city to eliminate minimum parking requirements for all future developments. A similar proposal is pending in the Denver City Council. A parking minimum standard — designed to ensure there’s enough spaces to accommodate a new building’s users — often adds to a developer’s costs or limits smaller sites’ development potential.

“Longmont was and is already moving in the direction of paving the way for additional transit and affordable housing opportunities, which is what the law was aimed at,” Assistant City Manager Sandi Seader said.

New construction is seen on Great Western Drive in Longmont on Friday, Aug. 2, 2024. (Photo by Matthew Jonas/Daily Camera)

The contrasting strategies embraced by the two Boulder County cities illustrate the increasingly scrambled patchwork of approaches Colorado communities are taking to tackle the state’s affordable housing crisis, which has put home ownership out of reach for many young families. A recent study found that from 2011 to 2021, the median price of a metro area home jumped more than 162%.

Though prices have come off their 2022 peak, the median home in metro Denver in May cost $600,000, according to the Denver Metro Association of Realtors. That’s about twice what a household making nearly $100,000 a year can afford.

State lawmakers, municipal officials and advocacy groups across Colorado agree that something must be done to tame prices and increase the availability of housing units in the state. But how to achieve that goal — and more importantly, who gets to call the shots — is where deep disagreement lies.

“It’s less about the two specific bills — it’s more about the principle of home rule and about what the community’s vision is,” said Kevin Bommer, the executive director of the Colorado Municipal League. “This comes down to who is in the best position to determine what works best for their communities.”

State Rep. Steven Woodrow, who took a leading role in crafting the 2024 bills, said he understands the passion of city and town leaders who don’t want to cede their land-use authority to the state.

But not enough has been done locally to alleviate a situation that seems only to worsen, he said.

“We really don’t have the time to take years and years in the courts while people can’t afford to live here,” the Denver Democrat said. “If these local governments were truly doing such a good job, we wouldn’t have this affordability crisis.”

Pedestrians cross North Public Road from East Simpson Street in Lafayette on Thursday, Oct. 3, 2024. (Matthew Jonas/Staff Photographer) Resistance grows to state laws

Aside from the half-dozen cities that filed suit against the governor last month — Aurora, Greenwood Village, Glendale, Arvada, Westminster and Lafeyette — several others have made it clear they support the legal challenge.

Centennial’s City Council passed a resolution to that effect this month and Thornton City Council members expressed support for the lawsuit at a recent meeting. In Parker, the Town Council passed two ordinances in early May “zealously asserting the town of Parker’s home-rule authority” to chart its own course on residential occupancy limits and ADUs.

The Douglas County suburb minced no words with its ordinances, declaring that each “supercedes and preempts” state law.

Parker, which has mushroomed from a population of fewer than 300 in 1981 to 68,000 residents last year, continues to put up new housing. It issued 622 building permits for single-family homes in 2023 and another 317 last year. On the multifamily development side, Parker issued 582 permits in 2023 and 102 permits for the first half of 2024.

Construction is underway at the Looking Glass development in Parker on Wednesday, June 25, 2025. (Photo by Hyoung Chang/The Denver Post)

State laws that foist more housing on Parker, while jacking up the potential for more residents living in a house, threaten to upset the town’s painstaking long-term planning process, Mayor Joshua Rivero said.

Parker, he said, “provides for adequate housing based on the available resources, including water, and increases in density can have a detrimental impact on those resources and the town’s residents.”

Its May ordinance on the accessory dwelling unit law bluntly states that town leaders have determined that Parker “will not be able to provide the essential public services necessary to serve one ADU for every single-family home in the town.” Not that there’s any likelihood ADUs would ever be so widespread in Parker — for example, Denver issued just 548 permits for ADUs over the last eight years, according to an October story by Denverite.

In Lakewood, Colorado’s fifth-largest city, the sentiment is less adversarial. Roger Low, a city councilman, said he was glad his city didn’t join the lawsuit against the governor.

“Instead, I am proud our City Council is in problem-solving mode, working hard with our constituents to draft a zoning update that will comply with these new state laws in order to make progress on our affordable and attainable housing goals,” he said.

Lakewood plans to retool its zoning code this summer. Low said the laws passed by the legislature in 2024 will serve as important guideposts in addressing the metro’s housing shortage, which Zillow last year pegged at 70,000 houses, apartments and condos.

“That shortage is driving rents up, cost-burdening and displacing too many Lakewood families, and directly fueling our homelessness crisis,” Low said. “I have little patience with the argument that this is purely a ‘local concern,’ when it is clearly also an issue of significant regional and statewide concern.”

But Lakewood’s efforts to comply with state law won’t move forward unimpeded.

Karen Gordey, a 14-year resident and a business owner in Lakewood, organized a community potluck last week to let people know about the upcoming land-use updates. She sees many of the proposed changes to Lakewood’s zoning code as damaging to the character of the city’s neighborhoods.

“I’m hoping we get enough of a turnout that they change their mind,” Gordey said of the council.

That’s what happened in Littleton in January, when residents came out in force to push back on an effort by city leaders to boost density in the southern suburb. They proposed allowing the construction of duplexes, triplexes and attached townhomes in single-family neighborhoods, but the City Council ultimately tabled the idea.

Rewind two years, and the same thing happened in Englewood. There, an attempt by city leaders to coax the building of denser developments in the city, which abuts Denver, prompted recall elections.

Single-family homes line a neighborhood street in Littleton on April 10, 2025. (Photo by RJ Sangosti/The Denver Post) ‘Give people more options’

Woodrow, the state lawmaker, said local resistance to proposed housing solutions has had wider negative impacts — ones that only state legislation can address. Restrictive municipal zoning and land-use rules, he said, have the effect of “artificially suppressing supply and driving up prices, fueling our affordability crisis.”

“While certain local governments have done great work and gone above and beyond, other local governments have shrugged their shoulders and said, ‘Not in my backyard — you can build elsewhere,’ ” he said. “So what we have are some local jurisdictions shouldering an outsized share of the burden while others are saying, ‘It’s not our problem.’ ”

State law, Woodrow said, can act to “take the pressure off of local governments and get the housing built.”

Matt Frommer, the transportation and land-use policy manager at the Southwest Energy Efficiency Project, said cities are going to have to do something to correct a problem that isn’t going to just disappear on its own.

SWEEP, a group that favors climate-friendly approaches, monitors Colorado cities and what they are doing with their housing policies.

“The housing crisis is not new,” he said. “Cities are feeling it — were feeling it like six or seven years ago. That’s when we started to see all these housing needs assessments. What did they learn through those? They don’t have housing diversity in their community and they need to allow more housing choices to lower costs and give people more options.”

Frommer’s organization points to a Keating Research survey conducted last year for Centennial State Prosperity, a nonprofit organization that pushes for more housing in Colorado. It found 68% of respondents support the new state law requiring cities and counties to allow more housing near transit stops and shopping districts.

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That same poll also showed 78% of respondents backing Colorado’s ADU law that goes into effect Monday.

The push for more housing options in metro Denver, Frommer said, is starting to proliferate in the form of pro-housing groups, which typically operate under the “YIMBY” moniker — for Yes in My Backyard. There are YIMBY chapters in Denver, Fort Collins and Denver’s northern suburbs.

One recently sprouted up in Arvada — one of the cities that sued Polis last month over the state’s housing laws.

“All these groups are popping up saying, ‘Hey, housing’s too expensive — I want to be involved in this,’ ” Frommer said. “That’s going to put more pressure on elected officials to respond.”

A newer condo building built in a residential neighborhood near Canyon Avenue and West Mulberry Street in Fort Collins on March 19, 2024. (Photo by AAron Ontiveroz/The Denver Post) ‘We know our communities best’

Bommer, with the Colorado Municipal League, has no problem with pressure being applied at the local level. Housing and zoning policy, he said, should be decided in city and town halls across the state — not under the Gold Dome in Denver.

“We spend all this time figuring out who gets to tell who what to do, instead of spending time to solve the problem,” he said. “We have one more year with this (Polis) administration, and I’d like to see partnership rather than preemption.”

Mangat, Lafayette’s mayor, said state legislative action on housing policy feels like an out-of-touch attack on communities that are already working hard to address the affordable housing crunch.

“We don’t want people who don’t come to Lafayette often telling us how much parking we should have,” the mayor said. “We don’t disagree with the mission and goal — we disagree with the process and implementation of it. We know our communities best.”

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Local affordable developers seek rezoning for apartment project in Denver’s Cole neighborhood

Sat, 06/28/2025 - 06:00

While trams and trolleys have been off Denver streets for 75 years, a piece of their history is key in creating the city’s newest apartment project.

Local income-restricted housing developers Medici Communities and the Urban Land Conservancy are working together on a planned 63-unit income-restricted apartment building at the northwest corner of Gilpin Street and 35th Avenue in Denver’s Cole neighborhood.

“Being so close to downtown and being so close to Five Points and the River North Art District, Cole is gentrifying quickly,” said Andrea Burns, a spokeswoman for the conservancy.

The building is designed with a brick facade and will go up on a 2.3-acre concrete pad. It’s next door to the Tramway Nonprofit Center, a 1930s tram and bus storage building that occupies three-fourths of the block between 35th and 36th avenues and Franklin and Gilpin streets.

The conservancy bought the block in 2007 for $2.5 million, according to public records. The tramway building is home to 14 organizations and has been a hub for nonprofits since the 1990s.

“When you realize the after-school programs that are happening there that are all free for kids from the Cole neighborhood, there’s no doubt that there is a need for more affordable housing in this place,” Burns said.

The deal for the apartment project calls for the conservancy to lease the land for 99 years to Medici — which will build the four-story complex — ensuring that the apartments remain income-restricted for decades to come.

But a lot has to happen before hammers are swinging on-site.

The conservancy demolished an old building to make way for development in 2018 and considered condos for it in 2020. But zoning challenges got in the way; the property is under the outdated code, which the city updated in 2010.

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“The city’s old zoning code, and the complexities and obstacles related to that zoning, made it very difficult. So, this is a restart,” Burns said.

The Denver Planning Board will be the first city body to review the rezoning application on July 16, Burns added. The new custom zoning being applied for will allow the firms to build the apartment building while protecting the existing tramway building next door from development.

Before the conservancy, the block was owned by local philanthropist Chuck Phillips. He sold the site to ULC in 2007 and died in 2021. Phillips’ family trust also owns the real estate for Wyatt Academy, a public charter school that leases the building immediately north of the tramway building.

“We have really felt an imperative, as part of our mission, to try to deliver affordable housing here, also knowing that that was what Chuck Phillips wanted to do, and he wasn’t able to do it in his lifetime,” Burns said.

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Why Denver homeowners are investing more in renovation projects

Thu, 06/26/2025 - 21:54

A report from Instant Roofer reveals that Denver homeowners spend the most nationally on renovations.

They spend 4.5 times the national average on room conversions ($900 vs. $200), while renovation projects cost an average of $14,200 or 11.5% of household income annually.

“Denver has seen a significant rise in remote work opportunities over the past few years, naturally driving residents to invest more in their homes,” said Jacob Petrosky, Instant Roofer founder.

“When you’re working from home all day, you want it to be a nice space, and of course, you need that proper home-office setup.”

Choose improvements that make you happy

When considering home upgrades, Nick Painz, managing Broker at META Homes with RE/MAX Alliance, emphasizes the importance of enjoying the improvements while living in your home.

He advises homeowners to thoroughly vet vendors, since not all contractors are equal, and quality often correlates with cost.

It’s crucial to ensure that contractors are insured and that a written contract outlining the expected work is in place.

Your real estate agent can be a valuable resource for vendor referrals, as they have firsthand experience and can recommend highly rated professionals. Opting for locally owned service providers can be more beneficial, as larger companies often have overhead costs that inflate prices.

If you are considering selling your home, consulting a professional about design choices can help you align your upgrades with potential buyers’ tastes.

Painz cautions homeowners to avoid remodeling pitfalls.

Attempting DIY projects, particularly in critical areas like electrical or plumbing work, can lead to costly mistakes and safety hazards.

Avoid succumbing to high-pressure sales tactics; if a contractor pushes you to sign a contract immediately, it may indicate that you’re being overcharged.

Painz also recommends avoiding cosmetic changes that Painz calls “putting lipstick on a pig.”

He said buyers will be keenly aware of any DIY projects and may question the overall quality of the home if they perceive that corners have been cut elsewhere.

A 2025 Thumbtack report reveals that homeowners prioritize renovations for happiness over resale value.

A survey found that 84% favor joy-focused projects, even among those planning to sell.

Contributing factors include not planning to sell soon (32%) and spending more time at home (25%).

One-third plans to spend over $10,000.

The most popular projects include interior painting, replacing windows, installing new floors, updating light fixtures, walk-in closets, sunrooms, dedicated hobby spaces, in-ground swimming pools or hot tubs, built-in bookcases, and home gyms.

Avoid making remodeling mistakes

Liam Smith, a color and print expert at Aura Print, says aesthetic choices can affect the value of a property when you sell or rent. He recommends:

Wall colors: Use neutral tones instead of bright or dark colors.

Wallpaper: Opt for simple designs over outdated or busy patterns.

Themed decor: Avoid strong themes; keep spaces neutral to enhance appeal.

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Built-in features: Choose flexible, non-custom installations.

Interior elements: Buyers prefer bright, modern styles over dark or heavy decor.

Ceiling and floor treatments: Buyers prefer hardwood, neutral tile, or subtle carpet over bold designs.

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

Amid Broncos stadium talks, Denver Water quietly seeks to buy more than 20 properties near its campus

Thu, 06/26/2025 - 06:00

Denver Water quietly began the process of acquiring more than 20 properties near its campus this spring, just as the utility and the Broncos were discussing a potential deal to use some of its current land to build a new stadium.

Denver Water’s board authorized the acquisition plans — for 23 properties spanning roughly 18 acres that are a stone’s throw from its complex south of downtown — in April and May. Its members didn’t publicly discuss the items before voting.

The Broncos are considering the state-owned Burnham Yard and the surrounding area among potential options in metro Denver for a new stadium to replace Empower Field at Mile High as the expiration of the team’s lease approaches in early 2031. Denver Water owns 36 acres that’s partially adjacent to the old rail yard and would likely have to move much of its operations to another location if the team chooses that site and reaches a deal with the utility.

Travis Thompson, a spokesperson for the water utility, didn’t directly respond when asked by The Denver Post this week if the properties are related to the Broncos stadium negotiations in Burnham Yard.

“At this time, Denver Water is just exploring some voluntary acquisitions of properties near our operations complex to meet future operational needs. There are no set plans, as we are only evaluating potential options for the future,” he wrote in an email.

The wider stadium talks involve more than the Broncos and Denver Water — Gov. Jared Polis’ and Mayor Mike Johnston’s administrations have also taken part in the discussions about the team’s next stadium site if the Walton-Penner Family Ownership Group opts to move. Broncos representatives have also had conversations with officials in Lone Tree and Aurora about possible stadium sites in those cities, The Post has reported in recent months.

The water utility has spent nearly $200 million on its campus, including on a new modern headquarters building that opened on the north end of the property in 2019.

The board approved two resolutions, on April 9 and May 14, allowing Denver Water to “send notices of intent to acquire Property Interests and negotiate to acquire Property Interests.” The documents provide little indication of the intended use of any acquired properties but include this identical statement in each resolution: “The Board requires the acquisition of additional property in the vicinity of the Administration Complex for the ongoing and future operation, maintenance and repair of its water works system and facilities (the Project).”

The resolutions, both included in lists of agenda items that were passed together without discussion, didn’t include the addresses of the properties. The utility provided the specific addresses for properties being sought only after a reporter asked for them.

All of the sites are within a half-mile of the Denver Water campus. They are between Interstate 25 and Shoshone Street and span from 14th Avenue south to 12th Avenue. They are all either commercial properties or vacant land.

(Map link)

Denver Water’s administrative office building is southeast of the targeted parcels, along 12th Avenue. Its current operations complex extends about four blocks to the south, with the southern-most part abutting the banana-shaped, 58-acre Burnham Yard at its widest point.

None of Denver Water’s five board members responded to requests for comment Wednesday. The water utility was created under the Denver charter but operates as an independent agency, with its board members appointed to staggered terms by the mayor.

Denver City Councilwoman Jamie Torres, who represents that part of the city, said she was unaware of Denver Water’s plan for the land acquisitions but said one of the property owners had contacted her after receiving a notice.

The Post and BusinessDen reported last week that Denver Water and the Broncos have been engaged in discussions for more than a year about the water utility’s campus. BusinessDen also reported this month that the team is connected to a group of limited liability corporations that have recently purchased at least 13 parcels in areas directly adjacent to Burnham Yard and the Denver Water campus.

Denver Water's headquarters, front, and Burnham Yard, in the background, in Denver on Thursday, June 19, 2025. The rest of the water utility's campus, including operational buildings, is seen behind the headquarters to the upper right. (Photo by Hyoung Chang/The Denver Post) Related Articles

Denver Water has acknowledged it’s in talks with the team but has not said whether all or part of its campus would be affected.

“It is premature to draw any firm conclusions,” Denver Water spokesman Jimmy Luthye said in a statement to The Post last week. “In these discussions, we’ve tried to make sure they fully understand any potential implications for Denver Water facilities and operations.”

Since then, Denver Water CEO Alan Salazar has told The Post’s editorial board: “We recognize the impact this development could have to the largest community we serve. Creative minds can think about ways that this could work. We’re trying to get there.”

Denver Water’s board would still have to approve any deals for the land it’s seeking. The board would also have the final say on the approval of any sale of its own land, Thompson said.

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Why Colorado’s massive home inventory failed to spark buyer interest in May

Fri, 06/20/2025 - 13:19

Despite soaring inventory, at its highest level statewide in Colorado since 2019, sales remain stagnant as buyers grapple with high interest rates.

Sellers continue to list their homes, knowing interest rates are unlikely to drop soon.

According to the Colorado Association of Realtors’ monthly market trends housing report, buyers, some of whom have been waiting for years for more options, either negotiate concessions and buy-downs or stay on the sidelines.

“The past five years have left us wondering when the market would balance or be more buyer friendly and, without a doubt, it is now,” said Aurora-area realtor Sunny Banka.

Colorado recorded 31,268 active listings in May, up 27% from May 2024. Statewide, sold listings slipped 1.8% from a year ago, while pending or under contract sales were up 11% from last year.

Cooper Thayer, a broker associate with the Thayer Group in Castle Rock, said higher costs keep homes on the market longer, causing a “pile-up” effect.

“The result is a whopping 4.2 months’ supply of inventory, setting a near-15-year record high,” Thayer said.

“For the first time in many years, it appears we’ve entered a bona fide buyer’s market, giving homebuyers the upper hand in negotiations,” Thayer said.

He said buyers who can afford higher interest rates, insurance costs, HOA dues, and property taxes can reap the market’s benefits.

Sellers will continue to compete.

“Prices have remained stable, inventory is still moving (albeit slower), and many prospective homebuyers still have a strong underlying desire to own a Denver metro home,” Thayer said.

“It just may take a little more strategy, preparation, and patience to find the right buyer for your home at a price that makes sense.”

Statewide, the median price of a single-family home fell 1.5% to $590,000 from April to May, and it is also down 1.2% from a year ago.

Condo-townhome median pricing rose 3.3% to $420,000 from April to May, returning to the same level a year ago.

Kelly Moye of Compass compared the market to running on a treadmill: “Active but not going anywhere.”

Julia Purrington Paluck, an Evergreen realtor, said the mountain metro market is experiencing its highest inventory in a decade.

“In the foothills, we usually see peak inventory in August or September. But, as of the end of May 2025, we’re experiencing the highest level of active listings in over a decade – about 36% more homes on the market compared to May 2024, and more than double what we saw in May 2023.”

Despite the jump in inventory, demand remains low.

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“Not many people are willing to give up their 2.5%-3.5% mortgage rates to purchase with a 6% rate,” she said.

That may indicate home prices will begin dropping.

“High supply and low demand indicate this won’t last,” she said. “The laws of supply and demand suggest we’re headed for some price adjustments.”

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

Partially built hotel near DIA sells for nearly $22M

Fri, 06/20/2025 - 06:00

The first owner filed for bankruptcy. The second owner defaulted on a loan.

Now, a long-stalled hotel development near Denver International Airport has a third owner and is coming in with a fresh construction loan.

Voyage Capital, a Dallas-based hotel investor, purchased the partially completed hotel at 16161 E. 40th Ave. late last month for $21.6 million from fellow Texas hospitality firm, Galaxy Hotels Group, according to public records.

Neither firm responded to a request for comment. Voyage financed the deal with a $24 million construction loan from Atlanta-based private equity firm Peachtree Group, records show.

The beleaguered hotel saga dates to 2009, when a firm called WPB Hospitality picked up the lot and subsequently broke ground on a Best Western hotel. Nearly a decade later, WPB was in foreclosure and bankrupt.

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A complicated legal battle ensued, with WPB suing a half-dozen companies, accusing them of conspiring to keep the hotel unbuilt in order to acquire the property cheaply through foreclosure. WPB lost the suit, and its main construction financier, American Lending Center, foreclosed on the property in May 2019 for $5.5 million. It sold the site to Galaxy Hotels later that year for $7.5 million, records show.

Galaxy Hotels borrowed $22.7 million to continue construction of the hotel. But just three years after buying it, Galaxy was in default on the loan and a receiver was appointed to manage the building, which was still sitting unfinished.

Peachtree Group, the lender that financed the recent sale of the hotel property, also held the debt for Galaxy, having purchased it in 2022, records show. The firm did not respond to a request for comment.

WPB’s owner, Wanda Bertoia, recently sold another distressed hotel nearby at 6210 N. Tower Road, under the brand Alpine Hospitality.

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Colorado tops country when it comes to this key cost for homebuyers

Fri, 06/20/2025 - 06:00

NEW ORLEANS — If owning a home wasn’t already burdensome enough, Colorado has registered the biggest increase of any state when it comes to how much extra owners must set aside to cover insurance and property taxes.

Lenders typically require borrowers to forward money for those expenses each month, which they hold in “escrow” to cover future payments. Those escrow payments are rising at a much faster rate than core mortgage payments, and those increases hit existing homeowners, not just new buyers, hard.

Nationally, homeowners faced a 17% increase in the average escrow payment last year compared to this year, according to a study from Cotality, a real estate research firm formerly known as Core Logic.

Colorado led the country with a 31% increase. Other states with high increases include Louisiana at 28%, Wyoming at 26%, and Montana and Alabama at 24%.

“In markets like Colorado, for example, it is the top market, it’s not just insurance, but it’s taxes as well,” said Selma Hepp, chief economist with Cotality, who was speaking at the National Association of Real Estate Editors in New Orleans.

Colorado experienced widespread and dramatic increases in residential property values between mid-2020 and mid-2022, which resulted in nation-leading property tax increases that forced political leaders to try and soften the blow.

While the increases in the assessment cycle that followed have been much tamer, the higher costs are now baked in. Incomes, while rising, haven’t gone up enough to compensate.

On top of that, the state has experienced substantial increases in natural disaster claims, from large hailstorms to the late 2021 Marshall fire, which destroyed more than 1,000 homes and caused more than $500 million in damages, making it the most destructive in state history.

Higher escrow payments strain existing homeowners, leaving them more vulnerable if there is a downturn or other economic disruption, Hepp said. Although homeowners in Colorado have built a large amount of equity, and delinquencies are low, borrowers could face higher strains if their incomes are disrupted.

Higher escrow costs can also keep first-time buyers on the sidelines by reducing the amount they can borrow to purchase a property. That appears to be showing up in a dramatic increase in the number of unsold homes seen in metro Denver and across the state.

That said, higher home prices and mortgage rates, which are the key headwinds for first-time buyers, shouldn’t create as much friction in the months ahead, predicts Lawrence Yun, chief economist with the National Association of Realtors, who joined Hepp on the panel.

Rates for a 30-year mortgage should average around 6.4% through the remainder of the year before moving closer to 6.1% next year, Yun predicted.

He doesn’t forecast a recession, and expects the Federal Reserve, which held its benchmark rate steady on Wednesday, to signal cuts later in the year which should set the stage for lower mortgage rates.

Yun expects home prices to rise 3% this year and 4% next year on average, but markets like Colorado that saw the strongest job gains and in-migration coming out of the pandemic could see home prices decline.

“Some markets will remain weak given inventory buildup and increases in non-mortgage costs,” Yun said.

Home price declines have emerged in Florida and parts of Texas. Colorado, which has seen flat prices, may soon join those states.

A key sign of emerging weakness in Colorado is showing up in the number of unsold homes. Statewide, there were 31,268 active listings in May, up 27% from May 2024, according to the Colorado Association of Realtors.

“We continue to see a trend of higher inventory of homes on the market and increasingly, data shows we are in a buyer’s market,” said Durango-area Realtor Heather Erb in comments included with the report.

Despite the rising selection, the state saw 1.8% fewer sales in May than it did in the same month a year earlier.

All the extra inventory is putting pressure on sellers. About four in 10 had to cut the price on their listings after failing to generate enough interest last month, according to Zillow.

One reason that buyers can’t step forward despite the higher inventory is the ongoing lack of affordability.

Orphe Divounguy, a senior economist at Zillow also speaking at the NAREE conference, said that the typical housing payment has doubled since 2019 in the United States.

For the typical household to afford the typical home and not be “burdened” or spend more than 30% of their pay on housing, they would need to ask their employers for an $18,000 a year increase.

The pay gap is much larger in constrained markets like California and popular markets like Denver and Austin, Texas, that saw a big run-up in prices from 2020 to 2022.

For years, financial advisers have chided younger generations for spending on nonessentials, led by David Bach, who created the concept known as the “latte factor.”

He argued that if people could cut out small and repeated expenses from their budgets — daily lattes purchases being a prime example — they could save more aggressively and achieve their larger goals, including purchasing a home.

But Starbucks is still in business and Divounguy called the latte factor a myth. The gaps between what people make and what homes cost to purchase are simply unbridgeable with small adjustments.

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“If you bought a $10 Frappucino every day, you know, and you gave up your $10 Frappucino, it would take about 240 years to get enough money to save up for a downpayment in San Francisco,” he said.

The lack of affordability means that renters are staying renters for longer. The median age of a renter in the U.S. is now 42, compared to 36 in 2000, per U.S. Census Bureau numbers.

“Renters are starting families, and they’re doing that renting as opposed to buying their first home,” Divounguy said.

To have enough space to do that, older renters are moving into single-family home rentals as they start their families. Those rent for about $3,000 a month in Denver, which is $800 less than a typical mortgage payment on a comparable home, assuming a 10% down payment, according to Zillow.

There has also been more construction of multi-family rentals, which is putting downward pressure on rents. About six in 10 rental listings in Denver now offer freebies or concessions to potential tenants, Zillow said.

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Denver’s officially a buyer’s market. When will homebuyers show up?

Fri, 06/13/2025 - 14:36

Available homes in the Denver metro surged 48% year-over-year in May, producing the highest inventory levels since 2011.

According to monthly data compiled by the Denver Metro Association of Realtors, the 13,599 active listings in May are up 14% from April and 48% from the 9,159 available a year ago.

May’s available homes are close to the historic average of 14,510 from 1985 to 2024. The record high was 30,457 listings in 2006, and the record low was 2,075 in 2021.

But while that inventory makes Denver a buyer’s market, prices remain steady as potential buyers remain cautious. The median close price in May sat at $600,000, down slightly from April’s $604,000 but the same as the median close price a year ago.

“As more homes enter the market and fewer are closing, we’re seeing a build-up of active listings rolling into the next month,” said Amanda Snitker, chair of the DMAR Market Trends Committee.

“This is where strategy and staying power come into play. Sellers need to be mindful of how their home is positioned — while buyers may finally have more room to breathe.”

Data from April’s REMAX National Housing Report indicates that Denver is among 10 major metros where conditions favor buyers for the first time in years. Denver ranks third in that report behind San Diego and Raleigh, N.C.

According to the REMAX report, multiple markets are seeing a rare combination of:

Increased active inventory
Longer days on market
Stable or declining median prices
More new listings.

Nationally, Redfin reports 500,000 more sellers than buyers, the most on record. According to the report:

There are 34% more sellers in the market than buyers. At no other point in records dating back to 2013, sellers outnumbered buyers this much. In other words, it’s a buyer’s market.
Redfin expects home prices to drop 1% by the end of the year. Prospective buyers may see their purchasing power increase, and prospective sellers should consider selling sooner rather than later.
31 of the top 50 metros, including Denver, are buyer’s markets. The report shows Denver has 16,357 sellers and 11,525 buyers, a 42% difference.

According to DMAR, May’s pending sales of 4,349 were up 7% from April’s 4,069 and 10% from 3,949 a year ago.

However, May’s 4,036 closed sales were down 3% from April’s 4,145 and 10% from May 2024’s 4,460.

The median days of 13 in the MLS remained the same as April, but were up 44% from 9 days in May 2024.

Greg Cox with Compass said that in the $1 million or more market, May’s 5% sales volume dip in that category showed continued buyer hesitation.

“This gap between pendings and closings highlights a deliberate pace: buyers are entering contracts but pausing before finalizing, likely due to increased inventory and higher expectations, as well as a potential blip in the market from tariff negotiations in April.”

Andrew Abrams with Guide Real Estate expects the number of available listings in the $750,000 to $999,999 category to continue to increase.

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“Historically, inventory tends to peak around September. This means buyers who remain patient may soon benefit from more options, while sellers may find that patience is increasing tested.”

More inventory lets buyers prioritize low-maintenance homes while sellers face more challenges.

“If their property isn’t turnkey and priced appropriately, they are left with two difficult choices,” Abrams said. “Wait for the right buyer or reduce the price to stay competitive with other available options.”

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

Jefferson County man indicted on 11 counts of securities fraud in house-flipping business

Fri, 06/13/2025 - 08:18

A grand jury has indicted a Jefferson County man on 11 counts of securities fraud involving a house-flipping business he owned that allegedly solicited $4.8 million from at least 80 investors.

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Mack Jamie Sprouse, who ran Urban Veneer Holdings LLC, was arrested on June 3 and indicted two days later. According to a press release from the Colorado Division of Securities, Sprouse raised investor funds through the issuance of promissory notes that promised to repay the principal of the note and high-interest payments.

The indictment alleged that Sprouse made untrue statements and failed to disclose material facts to investors and engaged in fraudulent business practices. It also alleged that Sprouse falsely led investors to believe their investments would be secured by either Urban Veneer or collateralized by specific real estate assets.

Sprouse is not registered to offer or sell securities in Colorado, authorities said. The Colorado Division of Securities led the investigation while the Colorado Attorney General’s Office is prosecuting the case.

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Shuttered West Colfax VFW property lists for $5M

Thu, 06/12/2025 - 15:00

A former Veterans of Foreign Wars post along West Colfax Avenue in Denver has hit the market.

Colorado’s VFW organization is asking $5 million for the 20,000-square-foot building at 4747 W. Colfax Ave., which sits on just shy of an acre.

The site sits on two sides of an alley and is zoned C-MS-5, which generally allows mixed-use buildings up to five stories. The two-story post building was built in 1981.

The nation’s first VFW isn’t a smoky bar with vets telling war stories. Here’s what Post 1 in Denver is doing instead.

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Post 501 was formed in 1920 and was the first thing locally to be named after Francis Brown Lowry, a Coloradan who was killed in action in World War I. He later became the namesake of the Lowry Air Force Base and thus the Lowry neighborhood, which now sits where the base once operated.

But Post 501 had its charter revoked last year by the national VFW organization, after the group’s statewide arm suspended the post and determined it could not be turned around.

“It is not done without a lot of due diligence and a lot of issues that we do not feel can be rectified by management of the post,” said Jesse Eastburn, adjutant/quartermaster for VFW Colorado.

Eastburn said the post officially had more than 100 veteran members, but only five were actively engaged — too few to even form a board.

Additionally, he said, there was “a lot of financial mismanagement.” The post building was rented out as event space, but leadership there failed to follow basic business practices, like ensuring the rental operation brought in more than it spent.

“It was very much financial illiteracy,” Eastburn said.

“At the end of the day, the biggest problem with 501 was they just wanted to be a bar,” he added.

The post was specifically built to be an event space, with the potential to have separate events going on each of the floors at once. The structure has a bar on both levels, a full kitchen on the ground floor and a catering prep area on the second floor. There are 70 surface parking spots.

“There is a way to reinvent this building that blends into some of the current concepts that are popular, like a beer garden,” said real estate broker Win King of King Commercial, who is marketing the property.

King has sold about eight post properties for the statewide organization over the past couple decades, and noted a buyer of 501 may be more interested in the land. It could be a good fit for income-restricted housing, he said, noting similar projects nearby.

“The preference probably from the city’s side and the community’s side is more housing … If you vacate the alley, you might be able to get north of 200 units,” he said.

The list price works out to $240 a square foot based on the existing building, and $122 a square foot based on the land.

The VFW’s priority is to get a reasonable amount from the property so it can use the funds to support its three service offices in Denver, Colorado Springs and Grand Junction. Staff there help veterans access benefits and navigate their Department of Veterans Affairs claims.

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Other Denver VFW properties have also sold in recent years. Post 2461 along South Broadway sold in 2019 because “there just weren’t enough people coming into the post to pay the bills and keep the lights on,” the post’s commander said at the time. In 2018, a post at 2190 S. Platte River Drive was sold after it too had its charter revoked.

There are now just two posts left in Denver proper, Eastburn said.

Nationally, the VFW has seen declining membership amid struggles to recruit younger veterans who served in Iraq or Afghanistan. Veterans must have served in a war, campaign or “expedition on foreign soil or in hostile waters” to join, per the VFW’s website.

Still, Eastburn said there are new posts being formed. Things like video game nights have seen success at attracting the younger generation. And the newer posts are often opting not to have a building, and instead meet somewhere like a local community center.

“They don’t have to worry about the financial strain of running a business,” he said.

The housing market was supposed to recover this year. What happened?

Fri, 06/06/2025 - 17:43

As 2025 began, the stars were aligning for a housing market rebound.

Inflation was easing, the economy looked strong, and mortgage rates were drifting downward. By April, there were more available homes to buy than at any time since January 2020, according to the Federal Reserve of St. Louis. The conditions were ripe for buyers to reemerge, checkbooks in hands, and sellers to negotiate.

Then April 2, President Donald Trump rolled out his expansive global trade tariffs, shocking the stock and bond markets and sparking fears of a recession. Mortgage rates jumped again, hitting 6.89% for a 30-year fixed-rate loan May 29, their highest level since early February. The extreme volatility threw cold water on a fragile market. Buyers bailed out.

“There isn’t any urgency to buying right now — if anything it feels more risky to put a down payment into a home when you might not have a job six months from now,” said Daryl Fairweather, chief economist of Redfin.

Real estate agents across the country report a chilled environment, with sellers unwilling to lower their prices and buyers reluctant to make a big purchase as the economy flounders and the costs for a mortgage, insurance and property taxes rise. Even in markets where prices have fallen and inventory is piling up, like Austin, Texas, homes are sitting on the market for months. In fiercely competitive areas, like the New York City suburbs, where prices are still rising and homes sell fast, properties that would have gotten a dozen offers a year ago now get two or three.

“Yes, there is more inventory, but it’s almost like too little too late,” said Selma Hepp, chief economist for Cotality, a real estate data provider.

In 2024, there were fewer home sales than in any year since 1995. This year is looking worse. In April, the number of sales of existing homes dropped 2% from April 2024, while the median sale price rose 1.8%, marking 22 straight months of year-over-year price growth, according to the National Association of Realtors. The trade group also reported that pending sales are down from a year ago in every region of the country except the Midwest.

The number of canceled sales (one sign of a skittish market) also rose year over year, according to Redfin, which also found that there were nearly 500,000 more people trying to sell homes in April than there were people trying the buy them — the biggest such gap since Redfin began tracking the data in 2013.

La’Keshia White, a real estate agent in Douglasville, Georgia, said that some of her prospective buyers dropped out of the market after losing federal jobs. Others are nervous and scaling back their budgets to leave more cushion should their financial situation change.

“They used to be content, thinking their jobs are going to be there, but it’s not the same anymore,” White said.

In Lewisburg, West Virginia, Leah and Jesse Jones, who were in the market for a three-bedroom home, lost out on two bids: one to a cash buyer who waived contingencies and the other because the seller wouldn’t lower the price enough. After six months, they’ve paused their search, hoping a downturn might bring home prices down, too.

“I feel like buying a home, owning a home, is becoming a privilege that only the truly wealthy can enjoy,” said Leah Jones, 45, a clinical dietitian.

Yet despite a market full of reluctant buyers, sellers are not under pressure to drop their prices. Almost 60% of households have an interest rate below 4%, according to a study published in the Journal of Finance; selling would mean trading that low rate for a much higher one on a new purchase. Not since the 1980s, when borrowing rates soared into the double digits, have so many Americans been locked into their mortgages, said Lu Liu, an assistant professor of finance at the Wharton School at the University of Pennsylvania and an author of the study, describing the conditions as “unprecedented.”

Added to that, the country hasn’t built enough homes since the foreclosure crisis, creating a chronic lack of new housing supply that drags down the market and keeps prices high. “There is no panacea in sight,” Liu said.

Even Austin is stuck, despite starting construction on 102,000 single-family homes between 2020 and 2024, according to Zonda, a data provider. The median sale price there has fallen by 18% since the peak in April 2022, according to Unlock MLS, the multiple listing service for the Austin Board of Realtors.

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But buyers still see an overheated market — the median home price jumped 69% from April 2020 to April 2022 — and an uncertain future. Many sellers, in turn, would rather pull a listing from the market than meaningfully lower the price. “It’s a bit of a frozen market,” said Eric Bramlett, an Austin real estate agent.

In February, John Huffman and Nan Walsh listed their three-bedroom house in East Austin for $950,000, after buying a home in Columbus, Ohio, closer to family. The house hasn’t sold, and though they’ve lowered the price to $925,000, they’re in no hurry to make a deal. “I don’t feel any pressure,” said Huffman, 68.

The couple paid $618,000 for the house in 2017 and have a mortgage with a 2.6% interest rate. If it doesn’t sell, they may rent it out or use it as a winter getaway.

This article originally appeared in The New York Times.

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Low water landscaping: Why Colorado homeowners are making the smart switch

Fri, 06/06/2025 - 12:11

As water conservation becomes increasingly urgent across Colorado, landscaping trends are evolving to prioritize sustainability and low-maintenance designs.

Homeowners are embracing xeriscaping and native plant landscaping and moving away from traditional bluegrass lawns in favor of drought-resistant options.

Lauren Floyd, design assistant at C&H Landscaping, said homeowners who switch to low-water landscaping are more likely to want to save money than those motivated by environmental concerns.

“We’re seeing more people moving to xeric landscapes using native plants to increase curb appeal and cut down on their water usage.”

Popular options include xeriscaping using native plants, planting ground cover, incorporating hardscaping, using mulch and gravel, and installing drip irrigation.

Xeriscaping

Xeriscaping uses drought-resistant plants, particularly those native to Colorado, like Karl Foerster grasses and Colorado blue spruce, because they are better adapted to thrive under specific conditions.

This landscaping approach often features succulents, lavender, yucca, and other low-water plants, which help conserve water while maintaining beauty in the garden.

Ross Hulstein, Highlands Landscaping CEO, said most homeowners understand that growing grass takes more water.

“Switching to low water use means less grass and more native plants,” Hulstein said.

He recommends choosing native Colorado plants that thrive in the high desert climate.

“They are used to the rainfall we get and will need less watering.”

In Fort Collins, homeowners’ associations that once required at least 60% blue grass are now modifying their requirements to options that use less water, said Kristin Crawford, the office manager of Waterwise Landscapes.

She said xeriscapes that include Karl Foerster, Maiden Hair, and Pampas grasses are popular and require less water and maintenance.

Aaron Le, owner of Modern Concepts Landscaping, said xeriscapes also appeal to homeowners who want something low-maintenance.

“They want something simple and clean so they have a nice looking yard without having to put too much time and effort into it,” he said.

Ground cover

Planting ground cover instead of using rocks offers environmental and aesthetic benefits.

Plants like creeping phlox and hen-and-chick succulents improve soil health by preventing erosion, enhancing moisture retention, and promoting nutrient cycling.

Ground covers also support beneficial insects and wildlife, fostering biodiversity. They provide vibrant, textured landscapes with seasonal color and help moderate soil temperature while retaining moisture.

Dan Zehr, owner of Living Landscapes, said using plants as ground cover helps create a healthy ecosystem. The plants provide moisture and support birds and pollinators.

“We’re experiencing a renaissance and people are discovering what it truly means to create an ecosystem,” he said.

Landscaping experts must help educate homeowners, especially transplants, to help them understand the environment.

“We need to show them that native short grasses will thrive and that hydrangeas and boxwoods are not appropriate for our climate.”

Hardscaping

Incorporating hardscape elements like patios, boulders, and mulch can effectively reduce grassy areas in landscaping.

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Additionally, using rock and gravel instead of traditional grass minimizes maintenance and significantly reduces water usage.

Hulstein warns that installing hardscaping costs more upfront, but takes less work and costs less to maintain.

Drip irrigation

Installing drip lines allows for targeted watering, making it a more efficient alternative to traditional irrigation methods.

This approach ensures water is delivered directly to the plants’ roots, minimizing waste and optimizing water use.

The news and editorial staffs of The Denver Post had no role in this post’s preparation.

Metro Denver housing market has most unsold listings in over a decade

Wed, 06/04/2025 - 06:00

Metro Denver’s housing market now has more unsold listings available than at any point since 2011, with 13,599 properties looking for a buyer at the end of May, according to a monthly update from the Denver Metro Association of Realtors.

That is nearly 50% higher than the 9,159 listings available a year ago and 6.5 times the tight 2,075 listings available in May 2021, which marked a record low for that month.

“Right now, the Denver Metro housing market is a master class in patience,” said Amanda Snitker, chairwoman of the DMAR Market Trends Committee and a local Realtor, in comments accompanying the monthly report. “Whether you’re a buyer waiting for the right home to hit the market or a seller holding out for the best offer, today’s conditions reward those who can pause, plan and stay engaged.”

There were 7,284 new listings in May, a 4.5% increase from a year earlier. That isn’t a big jump, but the backlog has been gradually building. In the first five months, sellers listed 29,881 homes and condos, up 17.5% from the same period in 2024, according to the report.

Although buyers and their agents have long pleaded for more supply. Now that it has arrived, sales are not keeping pace, a reflection of elevated prices and mortgage rates. The 4,036 homes that sold in the metro area last month represent a 2.6% decline from April and a 9.5% decline from May 2024. As long as new listings continue to outpace closings, the inventory will continue to back up, putting pressure on sellers.

“As more homes enter the market and fewer are closing, we’re seeing a build-up of active listings rolling into the next month,” Snitker said. “This is where strategy and staying power come into play. Sellers need to be mindful of how their home is positioned — while buyers may finally have more room to breathe.”

Inventory levels are moving closer to historical averages, which for May is 14,510 listings in DMAR records going back to 1985. Listings are taking a median of 13 days to go under contract, which isn’t as fast as the pace seen a few years ago, but isn’t sluggish either.

When inventories were super-tight in 2021 and early 2022, prices soared. Reversing that logic, will prices start falling now that the market appears to be saturated with a surplus?

It isn’t happening yet, but Seattle-based real estate brokerage firm Redfin argues it is a matter of when, not if. The median price of a detached or stand-alone home sold in May in metro Denver was $665,000, up 0.76% from April and 1.5% over the past year, according to DMAR. For condos and townhomes, the median price was $405,000, up 4.5% from April and down 0.25% from May 2024.

Redfin estimates that sellers nationally were sitting on $698 billion in unsold inventory at the end of April, of which $331 billion had been waiting 60 days or more to reach the closing table. That excess supply is due to there being about 500,000 more home sellers than buyers in the current housing market, with sellers outnumbering buyers by a 42% margin in metro Denver.

“A huge pop of listings hit the market at the start of spring, and there weren’t enough buyers to go around,” said Matt Purdy, a Redfin Premier agent in Denver, in a release. “House hunters are only buying if they absolutely have to, and even serious buyers are backing out of contracts more than they used to. Buyers have a window to get a deal; there’s still a surplus of inventory on the market, with sellers facing reality and willing to negotiate prices down.”