Even though real estate growth in Fort Collins continues to stay at strong numbers, Windsor and Timnath have exploded in growth, particularly in single-family homes. However, in Fort Collins, the single-family home growth has subsided, favoring more multi-family real estate such as apartments and townhomes.
In an article published by the Fort Collins Coloradoan, LC Real Estate’s own Eric Holsapple said that the trend toward multifamily residential real estate will continue as land parcels suitable for single-family development are in scarce supply along with the trend towards cutting cost with infrastructure.
"Water costs continue to escalate, all infrastructure costs are higher, everything just keeps escalating," Holsapple said. "For a while, prices continued to escalate, too. Now, the average family is saying they can’t afford it, even with down payment help."
A home that cost $300,000 to build seven years ago costs $450,000 today, he said. "That’s not affordable for a lot of families."
According to the article, in the past five years Fort Collins has permitted more apartments than single-family homes. The city of Fort Collins issued 1,614 single-family detached permits and 256 multifamily permits for 3,407 apartments from 2014 through 2019, according to city building permit numbers.
LC Real Estate understands the struggles of homebuyers, particularly in the Fort Collins area. LC Home is developing the Fox Grove neighborhood in North Fort Collins, east of Interstate 25 and south of Mulberry Street.
Holsapple said initially LC Home anticipated building larger homes to compensate for the cost of the land. However, with recent trends for homebuyers and cost of development, the Fox Grove community is trending toward smaller footprints, smaller homes with fewer options, some without basements, to bring the cost down.
Fox Groves homes that are priced over $500,000 are still selling well, he said, "but the normal spec home at $450,000 is not in demand like it was. We’re trying to get closer to $400,000."
The Fox Grove Community enjoys foothills views along with quick access to I-25 and Downtown Fort Collins. The development includes community parks, connected walking paths, and fantastic views of the Fort Collins foothills.
Fort Collins residential real estate supply continues to be tight, and it doesn’t look like there is much relief in the next 20 years according to the article. In 2020, the city’s job growth is outpacing housing units, wages are not keeping pace with rent and home prices, and housing capacity is insufficient to meet long-term demand, according to a city housing access report.
You can read the full article online from the Coloradoan here. To learn more about homes and availability in our Fox Grove Community, please contact our sales office at (970) 744-9501.