Market Adjustments Won’t ‘Take Care’ of the Challenge Without Unprecedented Value Declines
In partnership with Colorado Health Foundation
It is reasonable to consider the cautionary economic news of the last months, specifically those related to the increase in interest rates and their impact on housing, and wonder if, under emerging economic conditions, the changing market will take care of Colorado’s housing affordability challenges. In fact, the “will the market correct itself” question is posed increasingly as the economic conditions evolve. This research brief explores the concept of the housing market “correcting” itself by assessing the extent of the decline in home values required, by county, in order for the same share of “owner occupiable” housing stock to be affordable to the median income in 2021 as was affordable to the median income in 2015.