COLORADO SPRINGS — Ahead of Thursday’s State of the State address, leaders from Colorado's three largest cities sent a letter to Governor Polis outlining three top priorities they would like addressed in the 2025 legislative session.
They include the following:
- juvenile justice
- housing
- public safety
One issue they would like addressed involves how a recent Colorado state law is making it difficult for people to purchase their first home.
If you are looking to buy your first home, condos tend to be where a lot of people start off, but in Colorado Springs, very few are being built.
In fact, data from the Pikes Peak Regional Building Department shows 42 condo units were permitted in 2024, the first in the Pikes Peak region in three years.
“Condos, you know, really have... not (been) seen as affordable or entry level housing anymore, and they used to be the primary entry level housing,” said Scott Smith from the Housing and Building Association of Colorado Springs.
He said that's part because of a state law called construction defect litigation, which means property owners can sue builders and construction companies for things like cracks in the foundation, leaks or failing to meet codes.
"You know you're going to get sued,” Smith said. “The cost of defending yourself in a lawsuit, especially with condos, it's so expensive that it really creates situation where it's just not lucrative or productive to build condos or townhomes.”
He said construction defect litigation is a main reason why there is a lack of affordable condos for first-time home buyers.
“Over the last several years, condos are kind of like that's rich people's housing. Because, you know, it costs so much to build condos, and it costs so much to cover the insurance premiums,” said Smith.
He said lawsuits have gotten out of control, costing money and increasing insurance premiums. So builders are investing elsewhere, like in single family homes or apartments.
“So, you know, there's a housing need out there, so we've seen a big surge in apartment construction, but there's still a lot of people would much rather be a homeowner,” said Smith.
Among the first ten bills of 2025, Colorado Senators introduced Senate Bill SB 25-002. It focuses on increasing affordable housing and taking away barriers in construction.
This could be the push they need to make more condos in Colorado Springs.
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