A recent housing summit, hosted by the Housing and Building Association of Western Colorado (HBA) at Colorado Mesa University, brought together real estate and policy experts to address the growing affordability crisis.
With housing costs soaring, many residents find homeownership increasingly out of reach. The event focused on identifying key challenges and exploring possible solutions.
Housing Affordability Gap
Kevin Bray, HBA president and director of development at a real estate firm, presented market data highlighting a troubling trend. From 2008 to 2024, the median household income in Mesa County has consistently failed to keep pace with median home prices. While past housing subsidies targeted those earning 60 to 80% of the area’s median income, current programs now extend to households earning up to 120% of the median income.
Despite these efforts, a $70,000 affordability gap persists between what the average household can afford and the actual cost of a home. Bray noted that while incomes have risen by 20% in recent years, purchasing power has paradoxically declined by 2%, making homeownership more difficult.
Housing Shortage and New Developments
Mesa County faces a housing shortage, with an annual need for approximately 1,000 new homes. However, construction has consistently fallen short. While most new development has focused on single-family homes, the region is now seeing an increase in multifamily housing projects. Notable developments include:
- The Railyard
- The Eddy
- Market Street Residences
- The Landing
- The Junction
Additionally, nearly 1,400 multifamily units are in the pipeline, with Grand River Lofts set to begin construction this summer.
Statewide Housing Challenges
Policy analyst DJ Summers provided a broader perspective, highlighting Colorado’s overall housing crisis. The state ranks among the least affordable housing markets in the U.S., second only to Hawaii.
“Colorado is struggling under the weight of high costs, and housing is at the center of that frustration,” Summers said. He emphasized that while Mesa County has made progress in streamlining housing permits and expediting projects, more work remains. His organization plans to conduct further research into Grand Junction’s housing market to develop additional strategies for increasing affordability.
Barriers to Development
A panel of industry experts, including homebuilders, nonprofit leaders, and financial specialists, identified key obstacles to increasing housing supply. These include:
- High regulatory costs
- Zoning restrictions
- Permitting delays
- Impact fees
Builders explained that these policies drive up development costs, ultimately making homes more expensive for buyers. Nonprofit developers also cited funding cycle limitations and strict eligibility requirements as major hurdles.
One panelist noted that organizations serving as both developers and lenders face unique financial challenges, as they must finance construction upfront and recover costs through mortgage payments over several decades. Another expert stressed the need for greater flexibility from local governments and lenders, particularly in deed restrictions and securing lower interest rates for affordable housing projects.
Potential Solutions
Despite these challenges, the panel discussed several possible solutions to increase housing supply and improve affordability:
- Expanding grant programs
- Public-private partnerships
- Reducing regulatory barriers
- Implementing down payment assistance programs
- Cutting development fees
Looking Ahead
While there is still much to be done, the housing summit provided a valuable platform for collaboration among industry leaders and policymakers. As the conversation continues, local stakeholders are working toward innovative solutions to help more families achieve the dream of homeownership in Mesa County.
