COLORADO SPRINGS, Colo. (KRDO) — The city’s white-hot housing market has been great for its economy, but that appears to be changing.
The City Council this week expressed concern that steadily-rising home prices are starting to discourage some employers — and maybe even some families — from moving here.
According to the city’s 2020 financial report released Monday, the average price of a single family home jumped 20% in the past year, to $437,000, while the average price of a condominium or townhome increased 18% to $295,000.
“But you can almost throw affordability out the window because the demand is so high,” Jeff Greene, the mayor’s chief of staff, told the council during Monday’s work session.
“We can’t build enough houses to meet the demand,” he said. “People are paying from $25,000 to $50,000 above the listed price for a home. This can’t continue. We need to do something soon.”
Officials said that the increase in home prices is driven by high demand, low supply and significant costs in lumber, steel, concrete and other building materials.
“The situation has a lot of moving parts that we’re trying to bring together,” said Richard Skorman, council president. “Maybe we can reduce the fees that we charge builders. Maybe we can give them land to help reduce costs. We’re looking at everything.”
KRDO NewsChannel 13 will update this story on its 5 p.m. newscast. You also may check this page for updates.
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