In much of the United States, developers spend more to build an affordable apartment than market-rate housing. This commentary, originally published by The Conversation and reported by Colorado Newsline, explores how this imbalance affects development. Colorado is currently working toward closing this cost gap to facilitate more affordable housing options.
The challenge arises when the expenses required to construct affordable units exceed the income potential from those units compared to standard market-rate developments. By addressing these financial discrepancies, the state aims to make the creation of affordable housing more economically viable for developers.
Sources: Colorado Newsline (nonprofit statehouse newsroom)
