Is Prefab the Answer to Colorado’s Housing Shortage?
Colorado is in the middle of an affordable-housing crisis that cities across the state, especially mountain towns, are struggling to solve. According to a 2018 report by government-backed mortgage giant Freddie Mac, “the amount of housing in Colorado that was affordable to people making less than half of the median income had plunged by more than 75% between 2010 and 2016 — one of the biggest decreases in the country.”
It is clear that Colorado needs new housing, but our local building industry is not big enough to meet the supply, nor is it affordable for many. The number of construction and higher-skilled workers like carpenters, plumbers, and electricians are decreasing. With the demand for Colorado homes increasing at a rapid rate and the number of industry workers decreasing, prices of building a new home in Colorado are at an all-time high.
Transitioning from Traditional On-site Construction to Prefab
Prefab homes could be the solution to Colorado’s high demand for affordable housing. Compared to new construction homes, prefab homes are typically more affordable. The total cost of prefab homes can greatly change based on size, amenities, and location. However, buyers can expect to pay anywhere between $170 and $230 per square foot, which often includes the interior finishings and amenities of the home.
According to the United States Census Bureau, prefabs and modular homes account for almost 70% of new homes costing less than $150,000. And in January 2018, the average sale price for a prefab home without land was $93,000, which is 88% less than the average cost for a mountain home in Colorado.
With the cost difference alone, prefab homes and developments can address Colorado’s affordable housing crisis in a revolutionary way. Prefab homes provide the ability to produce quickly and at scale. Not only is this a solution to Colorado’s shortage of affordable living, but it is increasing the rate at which new homes are completed and ready to be lived in, without compromising their modern design and quality.
The SmartPads Solution
Here at SmartPads, we specialize in creating cutting-edge real estate solutions for Colorado buyers that provide more value at less cost and in a shorter time frame. Through our innovative building strategy, we eliminate more than 50% of construction line items while elevating quality through our phased construction timeline. While our homes are being built in an indoor facility in Utah, site preparation work can be simultaneously done on the land.
Learn more about how SmartPads can fix the Colorado housing shortage. Contact us today.