Affordable Housing Denver Public Affairs Council February 27, 2020 - PowerPoint PPT Presentation

Affordable Housing Denver Public Affairs Council February 27, 2020

Overview - State of the Market - Regulatory and Policy Challenges - Innovative Solutions

|Colorado Housing Market Coloradorealtors.com/market-trends • January Year over Year • Active Single Family Listings • 2019 – 15, 702 • 2020 – 12,202 (-22%) • Average Single Family Sales Price • 2019 - $456,288 • 2020 - $476,046 •

Colorado Housing Market Coloradorealtors.com/market-trends • January Year over Year • Active Condo/Townhome Listings • 2019 – 5,348 • 2020 – 4,351 • Average Condo/Townhome Sales Price • 2019 - $405,349 • 2020 - $443,085 •

National Association of Realtors Housing Picture The trendline for housing is on an upward path – Laurence Yun • - Timeline effects: - More permits for new construction, but still a spring market that’s tough for buyers - As trade-up buyers move into new homes in the near future existing homes are release onto the market

Why Homeownership is Capitalism’s Best Defense • Homeownership provides immense benefits for our country ( economic growth ), local communities ( civic and charitable engagement ), and for families ( wealth building and performance outcome of children ). • The rapid rate of job creation in cities have pushed home prices to record high levels, but this is more the result of misguided local policy that has prevented developers from building homes than anything else.

Colorado Regulatory and Policy Challenges Tax increases burdening purchasing power of Coloradans • Examples: • Mill Levy Equalization proposal • Hazard Mitigation insurance tax proposal • Enterprises without nexus to fees/taxes • Progressive Income Taxes • Healthcare proposals that reduce employee paychecks

Colorado Regulatory and Policy Challenges • Legislation or Policy that adds additional costs to building housing • Restrictive land use and building codes • Arbitrary limits on how communities should grow that deplete future inventory • High impact fees, cost of land, and cost of supplying water • Focusing policy attention more on rental rates instead of looking at Housing as a continuum of need

What Can We Do to Innovate Better Policy Solutions? CAR Affordable Housing Research and Other State Ideas

Preparing Consumers to Buy at Home * Financial literacy programs US Congressional bill on • lending and literacy * Giving Employers a chance to be a bigger part of the solution First Time Homebuyer • Savings Account Matching

Land Use Policy Flexiblity Zoning for micro housing, ADU’s, • smaller square footage housing, and density * Transit-Oriented Development * City planning that creates walkable neighborhoods with multi-uses: Workforce housing • Reduces commutes • Comprehensive services that • promote quality of life Enjoyable open space • Diverse local revenue streams •

Ta Tax Incentives centives & C & Cre reat ative ive Fi Financing ancing Maine bill • Wisconsin Tiff • Social Impact bonds • Equity building • Other Ideas Land banking and land trusts • Partnering w/ apprentice programs and colleges • Repurposing existing properties •

THANK YOU / Q&A epeetz@coloradorealtors.com 303-785-7121