What is Prop 123? Can it lead to more affordable housing?
In the last two years, Colorado housing prices have increased by more than 26%, resulting in the median home price being more than $570,000.
The proposed ballot measure, known as Proposition 123, aims to make housing more affordable for the average resident. The idea is to be able to provide down payment assistance for first-time homebuyers, as well as lowering rent and building more affordable housing across the state.
The goal is to have the proposition on the November ballot.
Those who support the proposition say that it would accomplish its goals by requiring a small portion of the state budget to be set aside to address issues around affordable housing. That would in turn help fix Colorado's housing crisis.
By focusing on making housing more affordable in the state, it can:
Expand home ownership opportunities for the state's vital workforce
Help renters build wealth to become homeowners
Require prioritized local review of building approvals
Help local governments increase the number of homes that Coloradans can afford by 3% every year, according to those that support the proposition
This would be accomplished without raising taxes, advocates say.
Why is this proposition important? What will home prices look like in the future?
Polls conducted by the Pulse, Colorado Health Foundation, state that a third of Coloradans are worried about losing their homes because they can't afford their rent or mortgage. An estimated 86% of Coloradans across all ethnicities and income levels say the rising cost of housing is an extremely serious concern, according to the Pulse, Colorado Health Foundation.
Advocates for the proposition say that If home prices continue to rise as they have over the last five years, by 2032 the median single-family home in Colorado will cost nearly $1.7 million. That means to qualify for a 30-year mortgage on a home that costs that much, a buyer would need an annual income of at least $372,000 — after making a 20% down payment of $339,000. Those numbers are based on Thrive Economic calculations based on data from the Colorado Association of Realtors.
Advocates also say if rents continue to rise as they have over the last five years, by 2032 the median rent in Colorado will be nearly $2,700 per month. A renter would need an annual income of more than $106,000 to afford this. Those estimates are based on Thrive Economics calculations using data from the U.S. Census Bureau.
To learn more about Prop 123, click here!