Colorado Springs has seen significant and steady increases in housing prices for both homeowners and renters in the last several years. From May 2020 to May 2021, the average sales price for a Colorado Springs home jumped 25.1%, from $401,980 in 2020, to $502,961! At the same time, rent prices are up 15.36% compared to last year! It’s no wonder that so many people are crying out for local solutions to affordable housing. Accessory Dwelling Units (ADUs) are part of the solution to the affordable housing crisis in Colorado Springs, and can help to reduce both the cost of homeownership and the cost of housing for renters in our market.
For homeowners, ADUs present a great opportunity to utilize your property to generate passive income that can be used to pay for / help pay for your mortgage payment each month. For example, a homeowner can build an ADU on their property, finance it with a monthly payment of, say, $900, and rent out the space for, say, $1500. This allows the homeowner to generate $600 in passive income that can apply to their mortgage payment, reducing what could easily be a $2,000+ mortgage payment closer to $1,000 per month.
At the same time, this ADU provides an additional rental in our local market, which, according to the laws of supply and demand, puts downward pressure on rental prices: as more rental units come on the market, the overall price for rent will decrease. This is a win for renters in the fight for affordable housing. Homeowners that build ADUs on their property also have the option to offer their unit for rent at below-market prices, which can help a local individual or family attain housing that may otherwise not be available to them.
StreamHome is committed to helping both homeowners and renters to take advantage of more affordable housing options. One hope for the StreamHome leadership team is that they will be able to help people who typically could not qualify to purchase a home to be able to do so, capitalizing on the income generated from Accessory Dwelling Units. This will enable these potential buyers to start taking advantage of the many benefits of homeownership (including gaining equity as home values appreciate, tax incentives, etc.), while also owning a property for less than they would pay to rent a similar property in many cases.
While the fight for affordable housing rages on in Colorado Springs and across the United States, Accessory Dwelling Units are emerging as one part of the solution. StreamHome is working hard to make the dream of affording a home a reality for many people in our community. If you or someone you know may want to take advantage of the benefits of Accessory Dwelling Units can provide for homeowners and renters, please give StreamHome a call or text today at 719-644-6777.
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