From The Colorado Real Estate Journal
It is no secret there is a historical low in residential properties for sale in the Denver metropolitan area. One of the key economic causes of the housing market’s current state is the almost absent construction of condominiums.
According to Metrostudy, for example, at the peak of the market in 2005, more than 4,000 condos were either built or converted in the Denver-metro area, whereas, in 2014, a mere 289 condos were built. This drop was not the product of a decline in demand; to the contrary, 2014 was a record year for re-sales (about 9,900) of existing condos. Condos provide an affordable housing option in a robust economy, especially for the growing millennial workforce in Colorado and the aging work-force looking to downsize as they become empty-nesters and retirees. However, construction defect litigation – including the near certain prospect of litigation – has stifled new development
During the last three legislative sessions, attempts to reform Colorado’s construction defect laws – in particular, the Colorado Common Interest Ownership Act, known as CCIOA, which governs condo communities and homeownersʼ associations – failed to reach the governor’s desk.
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