In much of the United States, developers spend more to build an affordable apartment for a low-income family than a market-rate one just down the street – sometimes far more. It is one of the central paradoxes of the nation’s housing crisis: The affordable homes that lower-income renters need most tend to be the costliest to build.
Colorado is an exception. In a recent study of more than 140 housing developments in California, Colorado and Texas, researchers at RAND, a nonpartisan research organization, found that affordable apartments in Colorado cost about $50 less per square foot to build than market-rate units. Colorado was the only one of the three states where affordable developments cost less to build than market-rate ones.
