Why are there no new Condos in Colorado?

More than 20 years ago, Colorado was grappling with a significant issue in the construction industry—construction defects.

To address this, the Colorado General Assembly passed the Construction Defect Action Reform Act (CDARA) in 2001. These reforms aimed to balance the interests of homeowners and builders by limiting the liability of construction professionals while ensuring homeowners had adequate rights and remedies.

Homeowners were frequently filing lawsuits against builders for defects in their homes, leading to skyrocketing insurance premiums for builders and a slowdown in new housing developments.

The reforms helped stabilize insurance costs with the goal of making it more feasible for builders to take on new projects. However, it is still easier to secure financing for rental apartments than condos because developers can sell the entire building to an investor vs. individuals for each condo unit.

The Act, addressed specific claims by building industry advocates that frivolous construction defect lawsuits had caused an insurance crisis that deterred affordable housing development. However, the act did not incentivize quality construction.

Nearly a quarter century later, homeowner advocates assert that limiting builders’ liability and homeowners’ rights encourages shoddy construction, and that homeowners need more, not fewer, protections to safeguard what is often their largest financial investment—their homes.

Fast forward to today and the legislature continues to grapple with Colorado’s lacks of sufficient new housing – particularly middle market housing — to meet Coloradans’ current and anticipated needs. https://youtube.com/shorts/XjGx1TkJcik?si=15NR2YgedW38uTev